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Dealmaker: Mesa West Capital Originates $210M to Refinance Chicago Tower
Mesa West Capital, Los Angeles, provided a partnership led by Hearn Co. with $210 million to refinance the John Hancock Center’s office and parking components in Chicago.
The financing included $35 million of mezzanine debt, which Mesa West placed with an institutional investor at closing. CBRE Vice Presidents John Parrett and Bill Howe arranged the financing.
Hearn Co. acquired the 100-story tower’s 894,000 square feet of office space and 710-car parking garage in 2013. The skyscraper on Chicago’s Magnificent Mile also includes a residential component not included in this financing.
Since acquiring the building, Hearn replaced the mechanical systems, renovated entries and lobbies and added a new 13th floor lounge. Future improvements include reimagining the building’s Michigan Avenue Plaza.
“Hancock Center is an iconic asset that has been successfully repositioned by Hearn and our financing will facilitate the completion of Hearn’s business plan,” said Mesa West Vice President of Originations Matthew Snyder.
Hearn Co. will use Mesa West’s five-year non-recourse loan to refinance existing debt and for ongoing leasing and capital costs to stabilize the asset.
The office component is currently 85 percent leased and anchored by marketing firm Interpublic Group.