ING Capital provided a $231.1 million senior loan to support Starwood Capital‘s acquisition of downtown Chicago-based office tower One South Dearborn. Also, Deutsche Asset Management provided a $62.5 mezzanine loan to back the acquisition.
NEW YORK, Feb. 5, 2018 /PRNewswire/ — ING Capital LLC (“ING”) has led a $297.6 million financing package on behalf of Starwood Global Opportunity Fund X (“SOF X”) used to acquire One South Dearborn, a 40-story, Class A, office tower located in downtown Chicago’s Central Loop. The acquisition closed on January 24, 2018. ING, as Administrative Agent, fully underwrote and closed a $235.1 million senior loan. In addition Deutsche Asset Management provided a $62.5 million mezzanine loan at closing on behalf of one of its private investors. ING expects to syndicate a portion of the senior loan in the coming weeks.
One South Dearborn was developed by Hines in 2005 and has been anchored by Sidley Austin LLP (“Sidley”) since its completion. Sidley is one of the nation’s largest law firms and recently renewed its lease at the property. The trophy property combines innovative design, technology-enabled infrastructure and a five-star amenity package.
“Starwood is very excited to add One South Dearborn to SOF X’s portfolio. It is one of the top office properties in Chicago’s Loop,” said Austin Nowlin, Head of Capital Markets at Starwood Capital Group. “ING was the perfect partner for us on this transaction. They were able to move very quickly, offer competitive terms with a great deal of flexibility, and provide us with certainty of execution which was critical for this transaction.”
“ING is thrilled to have supported Starwood Capital, one of our global clients, in its acquisition of One South Dearborn,” said Craig Bender, Managing Director and Head of US Real Estate Finance at ING. “The opportunity to finance One South Dearborn was very welcome given the quality of the property and the strength of downtown Chicago’s office market, which has seen a significant increase in demand over recent years due to urban migration from the suburbs.”
ING Capital LLC is an indirect U.S. subsidiary of ING Group N.V. (“ING”), a global financial services company with a network spanning 40 countries. ING has 51,000 employees helping its 36.9 million customer base manage their money and meet financial goals. ING, in the US, offers a full array of wholesale financial products, such as commercial lending, and a full range of financial markets products and services through ING Financial Holdings Corporation, and its affiliates.
About Starwood Capital
Starwood Capital Group is a private alternative investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 10 offices in four countries around the world, and currently have approximately 3,700 employees. Starwood Capital Group has raised $44 billion of equity capital since its inception in 1991, and currently manages approximately $56 billion in assets. The Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Over the past 26 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.
About Deutsche Asset Management – Real Estate
Part of Deutsche AM’s Alternatives platform, the Real Estate business acquires and manages investments in commercial and residential property, as well as real estate securities, on behalf of institutional and private clients. With USD 59 billion in assets under management (as of 12/31/17), Deutsche AM’s Real Estate business provides services in core, value-enhanced and high yield property investments, real estate debt, and investments in publicly-traded real estate securities. The global Alternatives platform has more than USD 88 billion in AUM (as of 12/31/17) in private real estate equity and debt, private infrastructure equity and debt, private equity and hedge funds, publicly traded securities in real estate, infrastructure and hard assets (commodities), and sustainable investments.