Dealmaker: Starwood Pays $360M for Chicago Office Tower
Starwood Capital Group, Greenwich, Conn., acquired 40-story Chicago office tower One South Dearborn from Olen Properties, Newport Beach, Calif., for $360 million.
The acquisition closed January 24.
ING Capital LLC, New York, underwrote the $297.6 million financing package, which included a $235.1 million senior loan. Deutsche Asset Management also provided a $62.5 million mezzanine loan at closing for one of its private investors.
ING said it expects to syndicate some of the senior loan.
Hines, Houston, developed One South Dearborn in 2005. Law firm Sidley Austin LLP has anchored the property since its completion and recently renewed its lease at the Central Loop property.
Craig Bender, Managing Director and Head of U.S. Real Estate Finance with ING, noted downtown Chicago’s office market has seen a “significant increase” in demand over recent years due to urban migration from the suburbs.
In a separate transaction, Starwood Capital Group and a Land Strategies Management affiliate doing business as Starwood Land Advisors acquired a commercial and residential real estate portfolio from Forestar Group, Austin, Texas, for $232 million.
The portfolio included nearly 4,800 fully entitled residential lots spread across 20 projects in Dallas, Austin, San Antonio and Houston, Texas, Charlotte, N.C. Nashville, Tenn., Raleigh, N.C. and Denver, a Katy, Texas multifamily community and 730 acres of unentitled land in southern California.
