Carlton plays $780m role in Sears Tower turnaround

Real Estate Weekly, Feb 7, 2007

The Carlton Group Chairman Howard L. Michaels announced that another major step in the miraculous turnaround of Chicago's iconic Sears Tower has taken place, as Carlton has arranged a $780 million, ten-year, fixed rate refinancing of this world-class, trophy asset.

The $780 million refinancing signals the resurgence of this outstanding asset, and caps off a very active period which witnessed the ownership renewing several large, long-term credit anchor tenants. In addition, over 100,000 square feet of new leases have been completed in the last 45 days.

With the Chicago market continuing to gain momentum over the last year, many corporate users looking for space have been convinced that Sears Tower is unrivaled in the amenities it offers its tenants.

This major loan and $1.2 billion valuation loan is a major coup for this 4.5 million square foot tower, and comes on the heels of major lease renewals with law firm Schiff Hardin & Waite, global financial service giant Bank of America for approximately 180,000 sf, and law firm Latham & Watkins for more than 120,000 sf. In addition, law firm Segal McCambridge recently signed a new 60,000 sf lease, and in a show of confidence, longtime anchor tenant Ernst & Young, which already leases over 300,000 sf in the building, recently expanded its presence in the building by taking additional expansion space.

The Carlton Group arranged this financing on behalf of the owners.

Carlton has been on a tear in the Chicago market, where the firm has completed approximately $2 billion of recent transactions.