JV Gets $296M Refi for Downtown Chicago Office Tower

321 N. Clark St. in Chicago. Image courtesy of JLL

A joint venture of Hines, American Realty Advisors and Diversified Real Estate Capital received a $296 million refinancing for 321 N. Clark, a 936,240-square-foot office tower in Chicago’s River North. Working on behalf of the borrower, JLL’s Capital Markets group secured the five-year, floating rate loan through Nuveen Real Estate.

Sited on the north bank of the Chicago River, the Class A building is served by multiple transit options, including a seasonal water taxi and shuttle bus service between the building and Ogilvie and Union train stations. In addition, the CTA’s Brown, Green and Orange lines are within a five-minute walk. The building is also just minutes from I-90, I-94 and I-290 and Lakeshore Drive.

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The 35-story tower was originally built in 1987 and underwent an $85 million renovation in 2019. The updates included lobby renovation, a four-tier riverfront restaurant and event space operated by Lettuce Entertain You, elevator modernization, and the addition of an amenity floor featuring a fitness center and tenant lounge.

The building also features a 168-space parking garage, conference center and bike parking. Notable tenants include the American Bar Association and Foley & Lardner. In addition, 321 N. Clark is LEED Gold-certified, according to CommercialEdge.

JLL’s Capital Markets team representing the borrower was led by Senior Managing Directors Keith Largay and Danny Kaufman, with support from Analyst Michael Halbach.

Signs of recovery

Based on office-specific metrics as well as measures encompassing commuting and employment, JLL estimates that Chicago’s office market has recovered 57 percent in comparison to an average week in 2019. At 27.5 percent, physical occupancy levels in Chicago’s offices have hit a high point since the pandemic started, in addition to which leasing transactions are up, according to the second-quarter report.

In River North specifically, Class A space has a total vacancy of 13.5 percent, on an inventory of 9.6 million square feet. The average direct asking rent is $49.62, according to JLL.

In February of last year, EQ Office signed Affirm Inc. to an approximately 57,000-square-foot lease at 350 N. Orleans St., several blocks west of 321 N. Clark St.