Blackstone wrote down its stake in this Chicago office building to $0. Now it’s talking with lenders on the debt coming due.
May 23, 2023 | Joy Wiltermuth | Market Watch
Blackstone Inc. began talks with its lenders about options on a maturing $309.8 million senior loan on a 1.3 million–square–foot office complex in the River North section of Chicago, just across the main branch of the Chicago River from the Loop central business district.
Blackstone remains current as of its last payment on May 9 on the Class A office complex at 350 N. Orleans St., which, connected by pedestrian bridge to the city’s famed Merchandise Mart, competes with high-premium addresses in its location. But the debt has transferred to special servicing, according to credit-rating firm KBRA.
Transferring a loan to special servicing signals a kickstart of discussions between a borrower and a lender when loans in bond deals look to be at risk of default. The loan comes due in July.
