McDonald’s HQ Project Receives $209M in Financing

The Chicago development will consist of 485,000 square feet of office space, as well as ground floor retail and underground parking.
Tim Joyce, HFF

Tim Joyce, HFF

Chicago—A joint venture between Sterling Bay and institutional investors advised by J.P. Morgan Asset Management has received a $209 million construction loan for the development of 110 North Carpenter, the future 567,000-square-foot global headquarters of McDonald’s Corp. in Chicago’s Fulton Market District.

HFF arranged the financing on behalf of the development partnership, placing the construction loan with Bank of America and Wintrust Financial.

“Due to the long-term lease and investment grade credit profile of this development as well as the best-in-class sponsorship and location, we received very strong interest from the lending community and were able to deliver terms and conditions superior to a traditional construction loan,” Tim Joyce, HFF’s managing director, said in a prepared release.

The development will consist of 485,000 square feet of office space, as well as ground floor retail and underground parking. The building will also feature private outdoor terraces and a rooftop deck. It’s expected to be completed in spring of 2018.

McDonald’s Corp. will relocate from its campus in Oak Brook to the nine-story creative office building, which will occupy the site previously home to Oprah Winfrey’s Harpo Studios.

The building is located just two blocks from the Morgan Street “L” station, providing connections to every major line in Chicago. It also has easy access to interstates 90, 94 and 290, Chicago’s primary interstates. Additionally, tenant shuttle service to the two downtown commuter rail stations will be provided from 110 North Carpenter.

The HFF debt placement team representing the borrower was led by senior managing director Michael Kavanau, managing director Tim Joyce and associate director Christopher Knight.

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