Blackstone Inc. began talks with its lenders about options on a maturing $309.8 million senior loan on a 1.3 million-square-foot office complex in Chicago’s largely desirable River North neighborhood. Blackstone
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remains current as of its last May 9 payment on the Class-A office complex at 350 North Orleans Street, which competes with high-premium addresses in its location just north of the central business center known as the Loop. But the debt has transferred to special servicing, according to credit-rating firm KBRA.

Transferring a loan to special servicing signals the kickstart of discussions between a borrower and a lender when loans in bond deals look at risk of defaulting. The loan comes due in July. Blackstone, one of the world’s largest investors in commercial real estate, has long been a favored borrower for Wall Street, often receiving the lowest rates available and ample access to debt. But more borrowers with maturing debt this year have been seeking debt extensions, loan modifications or simply handing back properties to lenders as an era of cheap and abundant credit ends. Related: Debt on trophy office buildings is starting to buckle as loans come due

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