Blackstone extends US$1.3 billion loan on Chicago’s Willis Tower
Property owners have often sought extensions to help manage debt loads as interest rates remain high
BLACKSTONE extended its nearly US$1.3 billion commercial mortgage-backed securities (CMBS) loan on Chicago’s iconic Willis Tower.
The debt, which was set to mature in March, was among the biggest US CMBS deals coming due in 2025.
“This extension reflects our continued belief in the strength of Willis Tower,” a Blackstone spokesperson said. “The building’s transformative renovation has positioned it for success.”
Blackstone extended the maturity by three years, according to a source familiar with the matter, who asked not to be identified citing private information. Property owners have often sought extensions to help manage debt loads as interest rates remain high.
Willis Tower, formerly known as the Sears Tower, was built in the 1970s and was considered the tallest building in the world at the time. Blackstone agreed in 2015 to buy the tower for US$1.3 billion and later embarked on a major renovation plan.
The loan’s extension was first reported by the Commercial Observer.
The building, located near Chicago’s Union Station, counts United Airlines Holdings, Morgan Stanley and Willis Towers Watson as tenants. Offices in the neighbourhood, known as West Loop, have been faring better than buildings in nearby areas. Vacancy rates in the West Loop stood at 23 per cent at the end of 2024, according to a Cushman and Wakefield report. In Chicago’s Central Loop, vacancy rates were nearly 28 per cent.
Commercial property owners have also been seeking to refinance debt for buildings they want to hold onto. Earlier this year, the owners of the Spiral tower in Manhattan raised US$2.65 billion in the CMBS market for the building. BLOOMBERG
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