JLL arranges $140M refinancing for Chicago’s Gallagher Way
The mixed-use asset is adjacent to Wrigley Field, home of the Chicago Cubs
CHICAGO, September 17, 2019 – JLL announces that it has arranged a $140 million refinancing for Gallagher Way, a recently completed lifestyle mixed-use development. The development comprises more than 93,000 square feet of office space, 85,100 square feet of retail space along with the 173-room Hotel Zachary and an open-air entertainment plaza adjacent to Wrigley Field, which is prominently located in Chicago’s Wrigleyville neighborhood.
JLL worked on behalf of the borrower, Hickory Street Capital, the real estate arm of the Ricketts family, to place the 30-year, fixed-rate loan with Barings, one of the world’s largest real estate investment managers on behalf of one of its managed accounts. Loan proceeds will replace the current construction financing arranged by the same Capital Markets team in 2016.
Gallagher Way includes two towers; the six-story Tower 1 houses 47,086 square feet of retail space and 93,667 square of office space anchored by the Chicago Cubs front office and the American Airlines Conference Center. It is located at the intersection of West Waveland Avenue and North Clark Street. Tower 2 is anchored by the Class A Hotel Zachary and contains 38,014 square feet of retail and entertainment space. The seven-story Tower 2 is at the intersection of West Addison Avenue and North Clark Street. The 30,000 square-foot Gallagher Way Plaza offers year-round programming for neighbors, families, Cubs’ fans and visitors. The plaza includes 8,000 square feet of green space and capacity for 1,000 seats or 3,000 standing guests for outdoor concerts, movies, and ice-skating rink and other events.
The JLL Capital Markets team representing the borrower was led by Senior Managing Director Danny Kaufman and Director Christopher Knight along with Managing Director Jeff Bucaro and Director Nicole Aguiar.
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 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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Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas (IL) LP.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com
About Hickory Street Capital
Hickory Street Capital (HSC), is a Chicago-based real estate development company owned by the Ricketts family — owners of the Chicago Cubs. In 2018, HSC completed its Wrigleyville development project — a $250 million, lifestyle mixed-use development adjacent to Wrigley Field. Visit hickorystreetcapital.com for more information.
Barings is a $325+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of its clients and customers. Through active asset management and direct origination, Barings provides innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific.