$215.1M financing secured for Canal Station in Chicago
JLL Capital Markets arranged construction financing for 801 S Canal St., a 684,000 SF office building in Chicago’s South West Loop submarket
CHICAGO - August 18, 2022 – JLL Capital Markets announced today that it has arranged $215.1 million in financing for the redevelopment of 801 S Canal St., a 684,000 square foot office space in Chicago, Illinois.
JLL worked on behalf of the borrower, 601W Companies, to secure a senior loan through Bank OZK and a mezzanine loan and preferred equity through Lionheart Strategic Management LLC on behalf of Milestone Asset Management.
601W Companies, one of the most successful developers in the United States, has significant micro-market and value-add expertise. The borrower’s Chicago development portfolio consists of The Old Post Office, Prudential Plaza and Aon Center.
Once completed, the creative office space will rebrand as Canal Station, with large, open floorplates and continuous glass windows modernizing the exterior. These large floorplates will boast a rare and highly desirable feature only available within a select group of office building in the Chicago CBD. The fully renovated building will offer best-in-class amenities, including a fitness center, tenant lounge, conference center, outdoor terraces and lobby. The building will offer 376 parking spaces, providing easy access to employees and a tremendous parking ratio compared to other Chicago CBD office properties.
Canal Station will continue the transformation of the South West Loop and the legacy of the Old Post Office. The Old Post Office, located one block from Canal Station, is one of the most successful and largest office redevelopments in the country. At 95% occupancy, the Old Post Office has demonstrated demand for high quality, large floor plate buildings, and does not have any currently available inventory for lease. Canal Station will be a logical sibling property and will continue to propel the renaissance along the South Branch of the Chicago River.
Canal Station is located in Chicago’s South West Loop neighborhood, home to globally recognized brands, including Uber, Walgreens, Home Chef and more. The property is further benefited by Chicago’s vast transportation network with access to Interstates 90, 94, 290 and 55, connecting Canal Station with the greater Chicago area. The office is also near public transportation, including Union Station, Ogilvie Station, Blue Line CTA, Orange Line CTA, Purple/Brown Line CTA and Red Line CTA.
The JLL Capital Markets team representing the borrower was led by Senior Managing Director Keith Largay, Director Lucas Borges and Analyst Ryan Sullivan.
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 and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
For more news, videos and research resources on JLL, please visit our newsroom.
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 $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of June 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Bank OZK
Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides financing on commercial real estate projects throughout the nation. RESG is considered a preeminent, market-leading construction lender focused on senior secured financing for a variety of property types including mixed use, multifamily housing, condominiums, office, hospitality, life sciences, industrial and retail. During the five years ended December 31, 2021, RESG originated approximately $35 billion in new commercial real estate construction loans. For more information visit www.ozk.com.
About Lionheart Strategic Management LLC
Lionheart Strategic Management, LLC was established in 2017 as the asset management vehicle for an affiliate of Fisher Brothers to manage investments for individuals of the firm and on behalf of third-party investors seeking exposure to real estate strategies with a primary focus on top urban markets within the United States. For more information, please visit http://www.lionheartstrategic.com/