Franklin Street Kills $130M Chicago Tower Deal

A deal inked by Franklin Street Properties Corp. on Oct. 31 for the $130 million purchase of Chicago’s 16-story Congress Center has fallen through.According to an SEC filing this week, Franklin Street elected to terminate the agreement on Jan. 13. No reason for the termination of the material definitive agreement was listed on the report. No terminations fees will be incurred, according to the SEC report. On Oct. 31, Franklin reported to the SEC that it had entered into a material definitive agreement to purchase property (pictured) located at 525 West Van Buren Street in the west loop of Downtown Chicago. The 16-story office tower with approximately 522,000 square feet of rental space was completed in 2002. Franklin was planning to pay a portion of the $130 million purchase price through the assumption of mortgage debt in the original principal amount of approximately $97.5 million. The mortgage debt was to be secured by three promissory notes in the original amounts of $18 million, $15 million and $2.5 million. The mortgage debt has a maturity date of Oct. 1, 2014. The closing was anticipated to take place in the fourth quarter of 2008 or the first quarter of 2009. Grubb & Ellis Realty Investors markets the property and published reports list the firm as the owner. On Jan 16, Franklin Street Properties Corp. reported a regular quarterly dividend of $0.19 per share of common stock for the period Oct. 1 through Dec. 31. The firm is based in Wakefield, Mass., and operates in two business segments: real estate operations and investment banking/investment services. The majority of FSP’s property portfolio is suburban office buildings, with select investments in certain central business district properties. FSP’s subsidiary, FSP Investments L.L.C. , is a real estate investment banking firm and a registered broker/dealer.