Blackstone has successfully obtained an extension for the $1.3 billion loan on Chicago's Willis Tower, now due in March 2028, with two additional one-year extension options that could push the final maturity to 2030. This marks at least the sixth extension for the loan, which was originally taken out in 2018. The negotiations were handled with KeyBank, the special servicer, after the loan briefly entered special servicing earlier this year.
The private equity giant, which acquired the 110-story skyscraper in 2015 for $1.3 billion, has invested more than $500 million in renovations. These improvements, which concluded in 2022, focused on enhancing the food court, amenities, and adding retail and entertainment options, contributing to over 400,000 square feet of leasing in the prior 18 months and over 1.2 million annual Skydeck visitors.
Despite the successful extension, there have been reports that Blackstone is exploring options for exiting its investment in Willis Tower, potentially by having a new investor assume the $1.3 billion loan. The property's financial performance has been robust, with revenues reaching nearly $188 million in the first nine months of last year, exceeding the full-year underwritten amount of $186 million. The net cash flow for 2023 was over $110 million, an increase from nearly $80 million in 2022. The tower's appraised valuation was updated to $1.4 billion last June, though it had briefly dipped to $1.03 billion.
