V
ista Property has refinanced a 15-story office building in Chicago's West Loop, securing a $32 million loan at a fixed 7.23% interest rate from JPMorgan Chase. The five-year loan replaces a $30.7 million mortgage taken out in 2021 and comes to $337 per square foot. The building, developed by Vista in 2022, is 94% leased with tenants including Fetch, Burford Capital, and NTT Data.

    The deal stands out against the challenging downtown Chicago office market, where high vacancy rates have put pressure on landlords. However, the building's small size and high-quality amenities, such as a penthouse lounge and outdoor terraces, have attracted tenants seeking modern and well-connected office spaces.

    Vista's confidence in West Loop opportunities is evident through its recent proposal for another 15-story office project at 640 West Randolph Street, which has been approved by the City Council but is on hold. The developer also plans a 32-story apartment building in the Fulton Market District, targeting a 2025 construction start.

    The refinanced property's success highlights Vista's ability to navigate challenging market conditions, as seen with its decision to start construction on the office project in 2021 without pre-committed tenants. Bank OZK provided the construction loan at that time.