The CHI 2026-FRKLN is coming to market with a $340 million single-borrower CMBS deal.
JPMorgan Chase Bank, with 60%; Bank of America, with 20%; and German American Capital Corporation, with 20%, will co-originate the non-recourse first-lien mortgage loan, according to Kroll Bond Rating Agency.
The loan is secured by the borrower's fee simple interest in The Franklin, a Class A, LEED Gold-certified office complex in Chicago.
Classes A through HRR have a final distribution date of September 2043. KBRA gives these preliminary ratings: Class A and Class B are rated AAA (sf), Class C is rated AA- (sf), Class D is A- (sf), Class E is BBB- (sf), Class F is BB+ (sf) and Class HRR is BB (sf).
The Franklin is an office complex with two towers. The first tower is 60 stories tall and located at 227 West Monroe Street; it was built in 1989. The second tower is 35 stories tall and located at 222 West Adams Street; it was built in 1992. Together, they occupy a full city block. The block runs along Franklin Street, between Monroe Street and Adams Street, in Chicago's West Loop neighborhood, according to KBRA.
The deal's collateral pool includes about 2.4 million square feet of office space, or 94.6% of the total, on the first through 60th floors. The asset also includes 40,211 square feet of retail space on the ground floor, or 1.6% of the total. Storage space covers 20,354 square feet, or 0.8% of the total, and the asset includes a below-grade parking garage.
The asset also features 74,682 square feet of amenity space, or 3% of the total. Amenities include a food hall and conference center on the 2nd floor, a lounge with a golf simulator on the 3rd floor, a fitness center on the 5th floor, coworking space on the 21st floor, a tenant bar on the 29th floor, and a sky lobby on the 44th floor.
The sponsor, Tishman Speyer Properties, acquired the property in 2004. From 2013 onward, it has invested about $64.1 million in the property, or roughly $25 per square foot. It is an affiliate of Tishman Speyer, a global real estate owner, developer and operator. The company has a presence throughout the U.S., Europe, Latin America and Asia. Its diversified portfolio covers more than 39 markets.
As of the last quarter of 2025, Tishman Speyer owned and managed more than 92.4 million square feet of property valued at $70 billion. The portfolio includes five assets totaling 7 million square feet; one is the Chicago property backing this transaction.
KBRA says the non-recourse carveout for this transaction is Prime Plus Investments.
