John Hancock Gets Big Refinance

CHICAGO—Mesa West Capital recently put its name on the map in Chicago when it provided Sterling Bay with $220 million to refinance its 1KFulton project in the West Loop, and it has now helped refinance another iconic office property. It has provided a partnership led by Chicago-based real estate investment firm Hearn Co. with $210 million in short-term first mortgage debt to refinance the office and parking components of the John Hancock Center. The financing included $35 million of mezzanine debt, which was placed at closing with an institutional investor.

In 2013, Hearn acquired the 894,000 square feet of office space along with a 710-car parking garage located within the 100-story skyscraper located at 875 N. Michigan Ave. on Chicago’s Magnificent Mile. Since acquiring the building, Hearn has replaced the mechanical systems, renovated the entries and lobbies on Chestnut and Delaware streets, and added a new 13th floor lounge, fitness center, and conference facility. It redesigned the common areas on each floor and redeveloped the bathrooms. And Hearn still plans to redesign the building’s Michigan Ave. Plaza.