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GEM Realty lands $305M refi on Loop tower

The local firm teamed up to buy 70 West Madison in 2014

70 West Madison
70 West Madison

GEM Realty Capital has landed a $305 million loan to refinance the 70 West Madison Street tower in the Loop.

Bank of America provided the loan. The bank also provided the debt for the $273 million acquisition loan that Chicago-based GEM, along with investment partners Farallon Capital Management and Hearn Co., took out when they purchased the building in 2014.

At the time of the purchase, the owners planned to invest as much as $50 million to update the 57-story tower’s infrastructure, fitness center and lobby, Crain’s had reported.

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It was not known how GEM will use the additional $32 million that went into the most recent loan.

Last spring, GEM acquired a majority stake in a 20-story Evanston tower for $91 million. Investcorp and Golub financed that acquisition with a $42.4 million loan.

In April, Blackstone Group made waves with a record $1.3 billion refinance of the Willis Tower — a year after it took out a $1 billion mortgage on the iconic skyscraper.

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