NorthMarq Arranges $59M in Financing for Chicago's 400 S. Jefferson Building
- Apr 11, 2012
By Nicholas Ziegler, News Editor
In an effort to help push along the schedule for Chicago’s 400 S. Jefferson building, NorthMarq has arranged $58.5 million in acquisition and renovation financing for the property. Sterling Bay Cos. is in the midst of a project to renovate the building, which will become the headquarters of Sara Lee Corp.’s meat business.
The three-year floating-rate loan financing was placed through NorthMarq’s relationships with Bank of America and Heitman Capital Management.
According to Jeff Cherner, a senior vice president & managing director of NorthMarq’s Chicago office, Heitman’s funds, along with dollars from the building’s owners, were used to close the existing credit facility in February, and BoA will soon begin funding the construction loan.
The building’s renovations are slated to be mostly complete by the fourth quarter of 2012. The property is undergoing a complete overhaul, receiving a new exterior and a green rooftop deck.
NorthMarq’s president & CEO, Eduardo Padilla, spoke with Commercial Property Executive last month about his firm’s strategies on capital sources. “We … see opportunities to continue to grow the equity arranging part of our platform,” he said. “That is an area in which we think we can excel and that we have grown significantly: arranging the equity component of commercial real estate transactions, the institutional joint venture partners, institutional-quality mezzanine financing basically, everything on the top of the capital stack other than first mortgage debt.”
*This story was updated at 12:10 p.m. on April 17, 2012, to correctly reflect the building’s address at 400 S. Jefferson.