Vista Property Group Refinances Chicago Office Building

November 14, 2024

JPMorgan Chase & Co. provided the loan in a deal arranged by JLL.

Exterior shot of 609 W. Randolph, an office building in Chicago. — The office building at 609 W. Randolph St. rises 15 stories in downtown Chicago. *Image courtesy of JLL*

Vista Property Group has received $32 million for the refinancing of 609 West Randolph, its 95,000-square-foot, Class A boutique office building in Chicago’s West Loop/Fulton Market. JPMorgan Chase & Co. provided the five-year, 7.23 percent fixed-rate loan in a deal arranged by JLL.

The transaction marked the second refinancing of the property this year, according to CommercialEdge information. Initially, Vista took out a $30.7 million construction loan from Bank OZK in 2021, which matured in January.

Then, the owner obtained a $30.4 million in bridge financing from the same lender. That note had a maturity date set in January 2025.

Completed in 2022, the office building features touchless technology and floorplates of 5,500 to 7,100 square feet. Amenities include a penthouse lounge and conference room, a green rooftop space with an amenity terrace, offices with private outdoor terraces and a lobby design modeled after boutique hotels.

The LEED Silver-certified property was 93.5 percent leased at the time of closing to 10 tenants. The roster includes Fetch Rewards, Buford Capital and NTT Data, among others.

Because it’s barely a block from the Ogilvie Transportation Center, the building offers quick access to three Metra commuter rail lines, as well as two Chicago Transit Authority elevated lines and numerous CTA bus lines. In addition, Interstate 90/94 is two blocks west.

JLL’s Debt Advisory team led by Managing Director Christopher Knight, Associate Matt Maksymec and Analyst Katia Novi represented the borrower.

Seeking stability

Chicago’s CBD office market is seeing greater stability, as total availability has decreased for two straight quarters, to 28.9 percent, according to a third-quarter report from Colliers.

Further, some timelines for proposed new developments have been pushed back to 2026–27, as office-to-residential conversions too are reducing office inventory.

In Fulton Market specifically, the total availability is 22.4 percent, on an inventory of 7.7 million square feet.

In July, Fulton Street Cos. topped out 919 West Fulton, their $300 million, 409,000-square-foot office building in the West Loop/Fulton Market submarket. The 11-story building is expected to open next year.