Date: May 2018
Location: Evanston, Illinois
Property Type: Office high-rise
Financing Amount: A loan equal to 65% of purchase price
Financing Type: Acquisition
Orrington Plaza, in Evanston, Illinois, is a Mies Vander Rohe-inspired, 20-story office building that offers stunning views of the City of Chicago, Lake Michigan and the Northwestern University surrounds. It is a unique property that can’t be replicated today at any price.
Golub & Company has had an ownership interest in the property since 1998, partnering with Investcorp since 2013. Golub wanted to retain its long-term interest in the building, while continuing its management role, as Investcorp planned to exit the property. Golub approached another established Chicago real estate investment firm with whom they had a long-term relationship and struck a deal to buy into the property. The only missing piece was financing.
Golub had previously worked with PNC Real Estate to finance a mixed-use retail and office tower in Chicago. Impressed with PNC’s ability to provide alternatives for long-term permanent financing, they recommended that their new partner consider PNC as a potential financing source in the recapitalization of the Orrington Plaza building.
PNC delivered a ten-year interest-only term loan with a rate just under 4.3%. The seamless closing impressed Golub’s new partner and provided the opportunity for the Chicago Real Estate Banking group to discuss financing capabilities on three subsequent transactions as well as begin to introduce the client to the menu of PNC products available, specifically treasury management and Institutional Asset Management services.
In discussing the transaction, Michael Goldman, SVP of Acquisitions and finance at Golub noted:
We like the fact that PNC can pull together experts in different types of financing so that we have a broad choice and the ability to structure a financing package that meets our needs with precision.