Bank OZK, Manulife Lend $233M on Chicago Office Complex
The 373,000 square-foot development is the only new office construction in Chicago in 2023
By Brian Pascus October 5, 2023 2:34 pm
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Fulton Street Companies and JDL Development, a pair of Chicago real estate developers, have secured $233 million in construction financing to build 919 on Fulton, a 373,000-square-foot office complex in Chicago.
Bank OZK and Manulife Investment Management provided the financing, while JLL Capital Markets’ Keith Largay, Philip Galligan and Tara Hagerty arranged the deal.
The project is the only office development in Chicago set to begin construction this year.
Largay emphasized that the deal reflects an ongoing desire for creative office space in a national market that has seen fewer new office originations due to a secular shift in usage across the asset class since COVID-19 began in 2020.
“The execution of this transaction in today’s capital markets environment demonstrates the resiliency and outperformance of creative office in mixed-use submarkets, not only within Chicago but throughout the nation,” Largay said in a statement. “Investors remain interested in investing and tenants remain focused on occupying best-in-class assets in thriving, mixed-use neighborhoods.
Ako Dickson, managing director of originations at Bank OZK, called 919 on Fulton “a remarkable project.”
“Our lending focus is on best-in-class assets in best-in-class submarkets and 919 on Fulton certainly delivers,” he said in a statement.
Located at 919 West Fulton Street, 919 on Fulton is expected to feature 350,000 square feet of Class A office space and 23,000 square feet of street-level retail. Retail anchor tenants will include Gibson’s Bar & Steakhouse and Harrison Street Real Estate. Amenities for users of the building will include a fitness center, a yoga studio, a tenant lounge, a bike room, an outside terrace and a rooftop terrace with views of the Chicago skyline.
Founded in 1993 by Jim Letchinger, JDL Development has built numerous residential towers and mixed-use skyscrapers. The firm’s other Chicago projects include 1 West Chicago Avenue, a 717-unit, 2.2 million-square-foot, 971-foot tall skyscraper; 640 North Wells Avenue, a 250-unit luxury apartment building with 10,800 square feet of retail space; and 811 Agatite Avenue, a 381-unit condo with 29,600 square feet of retail.
Fulton Street Companies — founded in 2017 by Alex Najem and Ross Babel — have carved out a niche in the Fulton Market neighborhood, which has seen a growth in mixed-use development over the last decade. The firm’s projects there include 1100 West Fulton Street, a 45,000-square-foot office and retail building; 1045 West Fulton Street, a 160,000-square-foot Class A office property; and 917 West Fulton Street, a 530,000-square-foot office and retail property, the largest Class A property in Fulton Market.
Brian Pascus can be reached at bpascus@commercialoberser.com.
