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CHICAGO-Loehmann's Department Store received a $12 million first mortgage for the department store's new location at the northeast corner of State and Randolph streets, across the street from the Block 37 development. The term of the loan is 10 years with interest only for the first three years, says Jeff Frankel, SVP of Chicago-based NorthMarq Capital Inc., which arranged the financing.

The loan-to-value for the financing was 60%, Frankel tells GlobeSt.com. The financing, which was provided by Citigroup, "was used to repay a portion of their construction loan," he says. "This loan was rate-locked in March 2007 on a nine-month forward basis. The lender funded as applied for and did not renegotiate the deal due to credit market conditions, even though their rate lock agreement would have allowed them to do so."

The apparel department store, which opened in October, has 27,385 sf on the first and second levels of the building. The Joffrey Ballet owns space on the third and fourth floor with the rest of the building being residential condominiums, Frankel says. The location at 151 N. State St. is Loehmann's first location in Chicago's Central Business District, Frankel says. Loehmann's also has Illinois locations in Morton Grove, Northbrook, Oak Brook, and Orland Park, according to the department store's website.