Construction financing secured for Chicago spec office project
JLL Capital Markets led the $30.684M financing for the repositioning of a historic office asset and construction of a new boutique, low-rise asset
CHICAGO – Jan. 21, 2021 – JLL Capital Markets announced today that it has arranged $30.684 million in financing for 601-609 W Randolph, which comprises a five-story historic office building and the development of a 15-story boutique office building to be built in Chicago’s Fulton Market District.
JLL worked on behalf of the borrower, Vista Property Group, to secure the financing through Bank OZK. Loan proceeds are being used to finance the upgrades at 601 W Randolph and fund construction of 609 W Randolph.
The project sits at the nexus of Chicago’s West Loop and Fulton Market District neighborhoods. Fulton Market’s historic brick and timber buildings provide a mix of luxury condos, creative offices, art galleries, critically acclaimed restaurants, hotels and high-end boutique retailers, while the West Loop offers traditional high-rise towers and is the preferred location for corporate tenants. Population has surged more than 40% within the last 10 years within a mile of the property with the median age resting at 34 years. The transit-oriented property boasts a Walk Score® of 98 and a Transit Score ® of 99, with a variety of commuting options nearby.
Once complete, 601 and 609 West Randolph will contain over 110,000 rentable square feet. 601 West Randolph, originally built in the 1890’s, includes five floors of retail and loft office space that will be renovated as part of the project. Designed by Antunovich Associates, 609 West Randolph will feature a modern brick and metal exterior and thoughtful interior design catering to post-pandemic demands. Smaller floorplans with flexible layouts, touchless interior features, smart restrooms and fresh air exchange are a few of the features being incorporated into the design. Additionally, 609 West Randolph will offer top-of-market amenities, including a rooftop terrace, fitness room, bike room, business lounge, communal co-working space, two large meeting spaces, and a café/tenant lounge.
The JLL Capital Markets team representing the borrower was led by Senior Director Christopher Knight.
“The West Loop is Chicago’s dominant office submarket, but existing product is predominantly large towers.” said Knight. “A modern boutique building in this location, combined with the immediate access to all of Fulton Market’s amenities and charm, will be uniquely appealing to tenants, particularly in a post-pandemic market.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Vista Property Group
Vista Property Group is a family-owned private real estate investment firm with a diversified portfolio of commercial, retail, and multifamily investments in urban centers. Core holdings are located in New York City, Chicago, North Carolina, and London, with an added focus on expanding into other exciting urban markets.
About Bank OZK
Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides senior-secured financing on marquee commercial real estate construction projects throughout the nation. RESG is considered a preeminent, market-leading construction lender changing skylines across the United States. For more information visit ozk.com.