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Overview

Bank of China provides a $245 million USD loan to Zeller Realty Group for 311 South Wacker Drive in Chicago

Commitments (Constant USD, 2023)$256,318,603
Commitment Year•2015Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 1, 2015

Geospatial footprint

Map overview

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The proceeds were to be used by the borrower to support its 65-story. 1.3 million-square foot office tower at 311 South Wacker Drive in the West Loop of Chicago. Its exact address is 311 South Wacker Drive, Chicago, IL 60606. More detailed locational information can be found at https://www.openstreetmap.org/way/147350208

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • Zeller Realty Group Inc. (ZRG)

Loan desecription

Bank of China provides a $245 million USD loan to Zeller Realty Group for 311 South Wacker Drive in Chicago

Interest type•Unknown

Collateral

This loan was secured by a mortgage on 311 South Wacker Drive.

Narrative

Full Description

Project narrative

In May 2015, the Bank of China (BOC) issued a $245 million USD loan to Zeller Realty Group Inc. (ZRG) — a Chicago-based real estate company — for 311 South Wacker Drive in Chicago, Illinois. This loan was secured by (i.e. collateralized against) a mortgage on 311 South Wacker Drive. The proceeds were to be used by the borrower to support its 65-story. 1.3 million-square foot office tower at 311 South Wacker Drive in the West Loop of Chicago. On March 11, 2014, Zeller and an investment vehicle invested by China Cindat Capital Management Co., Ltd. — a Chinese majority state-owned merchant bank and asset management company — had together entered into an agreement to purchase 311 South Wacker Drive for $304 million USD, with Cindat owning approximately 70% of the building and Zeller owning the remaining 30% and acting as management partner. This was the first major acquisition by a Chinese firm outside of New York, Los Angeles, and San Francisco. In May 2018, Zeller Realty Group Inc. obtained a $215 million USD loan for 311 South Wacker Drive, which it used the same day to terminate (repay) its mortgage with BOC and a mortgage with Canadian Imperial Bank of Commerce (CIBC)..

Staff comments

1. The specific use of the proceeds is unknown; it may have been to finance the acquisition of the building, refinancing existing debt, funding renovations or construction, etc. This issue merits further investigation. 2. It is possible the specific borrower was the special purpose vehicle (SPV) owning the building and not Zeller, which owns a 30% stake in the joint venture. This issue merits further investigation.