This Week's Chicago Deal Sheet: Willis Tower Loan Extended
Blackstone has extended the maturity date on its $1.3B Willis Tower loan by three years, according to reports.
“This extension reflects our continued belief in the strength of Willis Tower,” a Blackstone spokesperson told Bloomberg in a statement. “The building’s transformative renovation has positioned it for success.”
The Willis Tower loan made a brief stop in special servicing ahead of its previous March 2025 maturity, according to Morningstar Credit.
According to a Tuesday Morningstar alert, the loan's stay in special servicing was expected to be short. Commentary from the loan servicer indicated that “the borrower and special servicer have agreed to preliminary terms of a modification that would result in an extension of the loan.”
Blackstone Group refinanced its debt on Willis Tower in March 2018. At the time, a venture of Deutsche Bank and Barclays agreed to lend Blackstone $1.3B against Chicago's tallest building.
The tower's largest tenant is United Airlines, which leases about 731K SF of the 4.5M SF building, according to Morningstar Credit data. The company's lease term doesn't expire until 2033.
PEOPLE
Skender hired Andrew Lehrer as project executive in its mission-critical group. Lehrer comes to the company with expertise in high-performance, always-on facilities, advanced laboratory environments, critical operations hubs, high-rise mixed-use and corporate headquarters projects.
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Marquette Cos. appointed a new chief financial officer, Jason Tennenbaum. It also reorganized its senior leadership team, naming Trevor Ryan partner and president of the Marquette Cos. and Jim Cunningham partner and president of Marquette Management.
SALES
Westmount Realty Capital sold a 17-building, 925K SF industrial portfolio to an unnamed buyer for an undisclosed price. The portfolio is spread across the Lake County and Northern Fox Valley submarkets. At the time of sale, the portfolio was 94% leased to 154 tenants.
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Becovic purchased a 33-unit mixed-use property in Rogers Park for $3M from a local owner. Kiser Group's Katie LeGrand, Jacob Price and Danny Logarakis represented both parties in the deal.
LEASES
Howard & Howard Attorneys is set to relocate its Chicago office to Two Pru at 180 N. Stetson Ave. after signing a 22K SF, full-floor lease. Savills' Eric Feinberg, Brandon Nasatir, John Goodman and Isabel Schwartz lead leasing efforts.
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Activate, an interactive gaming facility, signed a 12K SF lease at Fox River Commons in Naperville. Activate opened its first Chicago-area site in 2023 and plans to open its third Illinois facility in River North next year. Continental Realty Corp.'s Kristin Perry and Mid-America Real Estate's Brooke Spinell represented the landlord, while Braden Real Estate's Courtney Waldon represented the tenant.
FINANCING
Habitat closed financing and finalized a 75-year ground lease for the second phase of its Ogden Commons development Living at 1312 S. Talman Ave. The $38M second-phase building is scheduled to open in the second quarter of 2026. It includes 75 apartments, with 76% reserved as affordable units, including 30 Chicago Housing Authority-designated residences.
A ceremonial groundbreaking for the second phase took place last summer, and site preparation is now underway.
