Optibase Announces $12.9M Investment in 300 South Riverside Plaza Office Tower in Chicago

Optibase Ltd. OBAS today announced that its wholly owned Delaware subsidiary, Optibase Chicago 300 LLC, completed an investment in 300 River Holdings, LLC, (the "Joint Venture Company") which beneficially owns the  rights to a 23-story Class A office building located at 300 South Riverside Plaza in Chicago (the "Property") under a 99 year ground lease expiring in 2114. Optibase invested $12,900,000 in exchange for a thirty percent (30%) interest in the Joint Venture Company.  The remaining seventy percent (70%) of the Joint Venture Company is owned by 300 River Plaza One LLC which is controlled by the U.S. real estate company Third Millennium Group. As a part of the Transaction, WKEM Riverside Member LLC, an existing member of the Joint Venture Company, redeemed all of its 30% interest in the Company.  In addition, the Joint Venture Company executed promissory notes in the aggregate amount of $60,000,000 in favor of WKEM Riverside Member LLC and 300 River Plaza One LLC. The promissory notes will accrue interest at between four and six percent (4%-6%) during the first five years and twelve percent (12%) per annum thereafter.     The Joint Venture will seek to See full press release