Real estate mogul Marvin Davis'Davis Cos. has tapped Fleet Securities to provide a $170 million acquisition loan to fund the Los Angeles-based real estate company's acquisition of 181 West Madison Street, a prime office property in downtown Chicago. The trophy was purchased last month from Yasuda Trust for $234 million, or about $250 per square foot.
Fleet will be seeking five additional participants to round out the syndicate in addition to Helaba Bank, which has already committed to hold $50 million. The bank will be holding a meeting this Thursday, an official said. The loan is priced at LIBOR plus 11/ 2%. Upfront fees have not yet been decided. Fleet has a longstanding relationship with the company, he added.
The 936,000-square-foot building is 99% leased, with Northern Trust occupying about one-third of that space. The remainder of the acquisition will be funded with existing cash, according to Mike Sitrick, chairman and ceo of Sitrick & Co., which represents Davis Cos.