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SAN DIEGO, CA-Developer OliverMcMillan of San Diego obtained a $56 Million construction loan for Glen Town Center in Glenview, Ill. from Fremont Investment & Loan, which calls its funding of the entire amount “a rarity for a project of this size and complexity.”

The Glen Town Center is a retail, entertainment and mixed-use district that will be the centerpiece of The Glen, a residential and commercial redevelopment on the 1,100-acre grounds of the former Naval Air Station in Glenview.

William Persky, CFO of OliverMcMillan, tells GlobeSt.com that this is only the second instance he can recall in which the San Diego company has obtained a loan so large that was carried by just one lender.

“This is rare, in the current environment especially, because most lenders don’t want to take anything over $25 million on their own,” Persky tells GlobeSt.com. He says OliverMcMillan did obtain a $60 million loan from a single lender about 10 years ago.

Persky says the loan is two-year construction financing that rolls over into a three-year mini-permanent loan for Glen Town Center, which OliverMcMillan broke ground on in July. Construction costs including land total about $160 million for the development, he tells GlobeSt.com. Financing for the deal includes $77 million in redevelopment tax increment funds from the Village of Glenview, a municipality in suburban Chicago.

Scott Manlin, vice president and regional manager of Fremont, says the company took the unusual step of backing the entire loan, rather than seeking other lenders to take part in it, because the developer made a significant equity investment in the project and has the support of local officials. The San Diego company is developing the project in a public-private partnership with the Village of Glenview.

OliverMcMillan broker ground for The Glen Town Center in July and the project is scheduled to open Sept. 30, 2003. Retailers, which have already leased 300,000 of the available 470,000 sf of space, include the Von Maur department store chain, Crown Theatres and Borders Books and Music. The stores will share space inside the historic Hangar One building, which was an integral part of the Glenview Naval Air Station for almost 70 years.

OliverMcMillan is a 24-year-old development company that builds urban retail, entertainment and mixed-use projects primarily through public-private partnerships. It is currently developing $125 million of urban loft projects in San Diego and a $45 million mixed-use project in the west Los Angeles area of Culver City. The OliverMcMillan-designed, $120 million Queensway Bay waterfront project in Long Beach, California, “The Pike,” also broke ground this year.

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