KBS Receives $375M Refinancing for Accenture Tower Office Building in Chicago
CHICAGO — California-based investment firm KBS has received a $375 million loan for the refinancing of Accenture Tower, a 40-story, 1.5 million-square-foot office building located at 500 W. Madison St. in downtown Chicago.
Accenture Tower, named for the accounting firm formerly known as Arthur Andersen that changed its name following the 2001 Enron scandal, was originally built in 1987. The LEED Gold-certified building sits above the Ogilvie Transportation Center, one of two main train stations in Chicago’s West Loop, which connects the suburbs with the downtown area.
In terms of amenities, Accenture Tower features a fitness center, tenant lounge, and conference centers. Tenants also have access to an onsite bank branch, courier service and concierge service.
U.S. Bank and Bank of America jointly provided the financing, which consisted of a $281 million term loan and a $94 million revolving loan. The term loan was structured with a three-year initial term with two one-year extension options, and priced with floating interest rate over LIBOR. U.S. Bank will be the primary servicer of the loan.
Deutsche Pfandbriefbank, a German bank specializing in real estate and public sector financing, participated in the transaction, though the company’s role was unclear.
“The iconic nature of Accenture Tower and its first-rate credit tenancy were apparent to the lender group, offsetting any short-term COVID-related concerns regarding CBD office properties,” says Rob Durand, executive vice president of financing for KBS. “Accenture Tower’s irreplaceable location, combined with KBS’ strong operating experience, conservative leverage and financing acumen, were key factors in the successful loan closing.”
— Taylor Williams