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CHICAGO-Structured Development recently secured a construction loan for its $77-million mixed-use development at 1400 N. Halsted St. Maverick Commercial Mortgage Inc. arranged a $70-million construction loan for the project at the corner of West Blackhawk and North Halsted streets.
The interest-only loan has a term of three years with an optional, one year extension, with the interest floating rate priced off Libor, says Benjamin Kadish, president of Maverick Commercial Mortgage. A first lien security interest on the buildings, land and construction contracts are collateral for the partial recourse loan. The lender was not disclosed.
The mixed-use development will have three separate buildings. The British Schools of America will lease an approximately 75,000-sf building for a term of 25 years. The lease rate was not disclosed. The school is expanding from its current location at 1643 W. Bryn Mawr Ave. where it has about 30,000 sf, Kadish says. The school started in 2001 serving only children up to about six years old and adding more levels as the children age. There will be a small amount of retail on the ground level, he says.
The other two buildings will include a four-story, 140,000-sf building with retail and medical office space and a building with 10,000 sf of retail space and parking for 650 cars. There will be a total of 88,000 sf of retail and 70,000 sf of medical office space in the development, Kadish says. Construction has begun, and the five-story school building should be completed by the third quarter with the school opening in the new location in January.
An office supply retailer is expected to lease between 18,000 sf and 20,000 sf. OfficeMax, Office Depot and Staples have all expressed an interest in the site, Kadish tells GlobeSt.com. An outdoor clothing retailer, high-end jeweler and furniture retailer are also expected to lease space. There have not been any leases signed yet for the retail but there are some letters of intent signed. A pediatrician has signed a lease for about 12,300 sf and a dentist is expected to lease 4,000 sf. The asking rates are $45 per sf net for first floor retail, $30 per sf net for retail on the second floor and $25 per sf net for medical office space, he says.
Maverick was able to secure the loan for 90% of the project cost, without a need for mezzanine financing, because of the “preleasing status, the location and demand for retail in the Clyborne Corridor,” Kadish says. The development will be just west of the Gold Coast and near Lincoln Park, will have parking and is in an area that for retail “is virtually 100% occupied,” he says.