Rendering, One Chicago Square, Chicago, IL
CHICAGO, IL—By making a $260 million structured investment in the One Chicago Square development project, Square Mile Capital Management has boosted its Chicago area presence.
The New York-based firm, which is actively investing in both equity and debt opportunities across the country, is capitalizing local developer JDL Development and Wanxiang America Real Estate in connection with their 76-story, 1.5 million-square-foot mixed-use tower in the city's prime River North submarket. The project's total cost is expected to be $850 million.
“This represents a major step forward for our firm's goal of becoming a capital provider of choice for best-in-class owners and developers of transactions of scale in urban markets with the requisite attributes for sustainable growth in a rapidly evolving technology-driven environment,” says Matt Drummond, managing director, Square Mile Capital. “A large part of what is fueling our growth is our unique ability to take on attractive situations that call for complex ownership and debt structures. The One Chicago Square development is a perfect example. We saw this as a great opportunity to provide a structured investment in a development project that is extremely promising, given the ongoing local demand for high-quality residential and retail product.
Drummond says demand is rising in Chicago for urban lifestyle properties.
“The best submarkets in Chicago are experiencing significant demand as a new generation of young professionals seeks to enjoy the rich, multi-faceted 24/7 urban lifestyle that the area offers,” he says. “We anticipate that this part of Chicago will continue to exhibit strong fundamentals and we are pleased to invest accordingly.”
The One Chicago Square project will feature 735 residential rental units, 77 residential condominium units and 193,000 square feet of retail space that is substantially pre-leased to Whole Foods and Lifetime Athletic. Also included will be office and event space, and over 1,000 parking spaces.
“We are also pleased to have the opportunity to work with JDL, a developer with an outstanding track record in Chicago, along with Wanxiang America Real Estate,” Drummond says. “In addition, the project's senior construction lender is Bank OZK, with whom we enjoy a deep business relationship.”
Located at the confluence of Chicago's River North and Gold Coast neighborhoods, three blocks from Michigan Avenue and within walking distance of the city's office district, the property will occupy a full city block on the site of a former parking lot purchased from the Archdiocese of Chicago.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
