NY Life Finances LaSalle Investment Management’s Onterie Center Purchase
- Mar 15, 2013
Drawing on the assistance of commercial real estate services firm Jones Lang LaSalle Inc.’s Capital Markets group, LaSalle Investment Management Inc. has landed $125 million in financing for the acquisition of the mixed-use Onterie Center in Chicago. New York Life Insurance Co. provided the funds for LaSalle’s $188 million purchase of the premier office and residential property from Metropolitan Properties of America Inc., which had shelled out $131 million for the complex in 2006.
How did the lending community view the opportunity to provide financing for Onterie Center? “Very favorably,” Keith Largay, a senior vice president with JLL Capital Markets, told Commercial Property Executive. “We received a fair amount of interest from both banks and life companies.”
And it’s no wonder. Onterie, which has graced the Chicago skyline since 1986, ticks all the boxes. It sits in a coveted area adjacent to Lake Shore Drive; its 615 residential units, located in a 60-story tower and an 11-story building designed by Skidmore, Ownings & Merrill, command top dollar; and the property’s 102,600-square-foot office component is fully leased. Additionally, the 16,000 square feet of ground-level retail space provides the “play” element in the live-work-play destination.
LaSalle, which is part of the JLL group of companies, will set aside part of the financing it obtained from New York Life for upgrades and renovations down the road.
The capital markets are, indeed, open for business. JLL believes lender response to opportunities like Onterie will only increase this year. “We see 2013 being very strong, as there is a great deal of capital in the market, with very few great offerings to match with it,” Largay said. “Competition for prime assets such as this will continue to be fierce.”