Next Realty completed a favorable refinancing transaction, arranged by BWE, on Kingsbury Center, a property located at 350 W. Hubbard Street in Chicago, Illinois. The loan features a 25-year term, which is unusual for an office asset.
“It’s a challenging market for Chicago office, there’s no question,” Andy Hochberg told CoStar News. “This refinancing transaction gives us long-term flexibility and liquidity. I don’t think it’s a good time to sell an office building in Chicago right now unless you have to… Kingsbury Center’s high-demand location, long-term ownership, low vacancy and the relatively small deal size helped Next Realty overcome broader market difficulties.”
Capitalizing on its proximity to the East Bank Club and the Merchandise Mart – two well-known properties along the Chicago River – Kingsbury Center is 95% leased and features well-established retail tenants, including CVS and Petco.
Ownership had paid down the previous loan’s balance over its term, so the new $11 million loan yielded a cash surplus. Next Realty will use a portion of these funds to secure additional tenants and maintain a portion as cash reserves.
The Kingsbury Center Quick Facts
Stories: Six
Size: 135,315 SF
Occupancy: 95%
Mixed-use Property: Retail & Office
New Loan Term: 25-Year Term
