The owner of a vintage Loop office building has put the property up for sale as it stares down the possibility of defaulting on its mortgage.
A venture of Irish real estate investment fund Wilton U.S. Commercial has hired brokerage CBRE to sell its 226,000-square-foot building at 65 E. Wacker Place, according to sources familiar with the offering. An asking price for the building couldn’t be determined, but sources said the building could fetch bids of around $25 million.
A sale at that price would barely cover the $24.4 million loan a Wilton venture took out in 2017 when it refinanced the property, which is just 60 percent leased, according to a Bloomberg report tied to the debt. The loan was packaged with other mortgages and sold off to bondholders.
The property at the time was appraised at $28.8 million, and the Wilton venture renovated the building in 2018 with a series of projects including a new tenant lounge and fitness center and lobby updates, according to CBRE.
The move to sell the 24-story art deco building comes less than two months after the loan was transferred to a special servicer, normally a red flag to investors in the commercial mortgage-backed securities loan that the owner could default. Net cash flow at the building has fallen well short of what the Wilton venture needed to cover its debt service on the building in recent years, with just $372,224 coming in for 2019 against a nearly $1.3