HFF Obtains Financing for Chicago’s 401 North Michigan Ave. on Behalf of Zeller Realty Group
- Aug 20, 2014
HFF recently announced that it has secured a five-year, floating-rate loan for 401 North Michigan Avenue in Chicago. The property consists of a 35-story, 758,131-square-foot Class A office tower built in 1965 by Skidmore, Owings & Merrill. According to a news release, the loan was obtained by HFF on behalf of Zeller Realty Group, Inc. through Blackstone Mortgage Trust. The HFF team representing the borrower included managing directors Mike Kavanau, Dave Keller and Christopher Carroll.
“It is exciting and rewarding to be once again entrusted with the assignment to recapitalize 401 North Michigan, an asset that HFF financed with Zeller Realty Group’s acquisition in 2001,” Keller says.
Located at the gateway to Chicago’s Magnificent Mile, the former Equitable building is adjacent to the Chicago Tribune Tower and the Wrigley Building. The building is currently 81 percent leased, with tenants including MTV, the University of Chicago and Kraft. 401 North Michigan Ave. is conveniently situated within a unique environment consisting of office, entertainment, hospitality, retail and residential destinations. Additionally, the building was awarded LEED Gold Certification in 2011.
“With the renovation of Wrigley, expansion of Northbridge, new addition of luxury hotels, and filling in of the ‘missing link’ of Michigan Avenue south of the River, 401 North Michigan Avenue is effectively the new nexus of the city,” Carroll says.
The loan secured by HFF will be used to enhance the Streeterville property over the next three years. Improvements will include a new lobby, a new ground level restaurant, a fitness center, and a complete revamping of the 19th floor. Current amenities include indoor valet parking facility, full-service food court and café, shuttle and taxi service to nearby stations, barber shop, nail salon, concierge, and building conference facilities.
Image courtesy of Zeller Realty Group, Inc.