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Highlights
Nuveen and Pacific Coast Capital Partners (PCCP) took ownership of the 35-story office tower at 321 North Clark Street by converting Nuveen's approximately $74 million mezzanine debt position into equity, wiping out the previous owners: Diversified Real Estate Capital, Hines and American Realty Advisors.
The transaction is the latest in a series of troubles for Nuveen's mezzanine office loans in Chicago and underscores the ongoing distress in the office market associated with floating-rate debt positions taken before interest rates rose in 2022.
The new ownership, Nuveen and PCCP, is signaling aggressive moves to stabilize the asset, including hiring Telos Group as the new leasing agent, retaining Hines as property manager, and planning to deploy additional equity capital for modernization and tenant improvements.