Square Mile Lends $149M on Resi Tower in Chicago’s North Side
Square Mile Capital Management has originated $149 million in financing to a four party joint venture backed by The Gallery on Wells, a recently completed 40-story residential tower in Chicago’s North Side, according to an alert from Square Mile.
The financing took out existing debt and preferred equity on the asset. A spokesman for Square Mile declined to provide additional financing details.
The joint venture includes Magellan Development Group, Wanxiang America Real Estate Group, MAC Management and Strand Advisors. The quartet completed the development in 2017, positioning the property in a hot submarket surrounded by millions of square footage of office space.
Peter Marino and Molly Green arranged the debt transaction out of CBRE’s capital markets shop in Chicago.
Square Mile Principal of investments Sean Reimer said in a statement that the members of the borrowing party each have a demonstrated track record in Chicago of bringing “high quality assets to this market,” which ultimately decided the permanent financing for The Gallery on Wells.
The 442-unit, 500,450-square-foot property was designed by Chicago-based bKL Architecture and cost $154.9 million to build, according to property information from Magellan. It is located at 637 North Wells Street in Chicago’s River North neighborhood and sports 108 parking spaces and 7,538 square feet of retail space.
Amenities include a 26,000-square-foot outdoor pool deck that includes a 25-yard lap pool, a hot tub, fire pits, grilling stations and cabanas. Inside, the building boasts a fitness center, a lounge, a game room and a sauna.
Current monthly rents range from $1,863 for studios to around $3,995 for three-bedroom units, according to information from the property’s website.
Officials at Magellan Development did not respond to an inquiry. An official at MAC Management declined to comment. Neither Wanxiang America Real Estate nor Strand Advisors could be reached.