CHICAGO — Northwind Group, a Manhattan-based real estate private equity firm and debt fund manager, has provided a $58.5 million first mortgage loan for the acquisition and lease-up of 175 West Jackson Boulevard, a 22-story office building totaling more than 1.4 million square feet in Chicago’s Central Loop. The property also includes a 240-space parking garage. The loan was structured with $33.5 million initial advance at closing, with an additional $25 million reserved as a “good news” facility to fund future accretive leasing costs. A joint venture between 601W Cos. and David Werner Real Estate Investments was the buyer.
The financing facilitated the acquisition at a significantly reset basis, reflecting an approximately 85 percent discount to the property’s prior purchase price by Brookfield, according to Northwind. The building has undergone extensive renovations and modernization, with over $24 million of capital improvements completed by prior ownership, including a new amenity center and rooftop space on the 22nd floor.