Dealmaker: JLL Arranges $193M in Chicago, New York

JLL, Chicago, arranged $193 million for a Chicago mixed-use development and a New York office property.

In Chicago, a capital markets team led by JLL Senior Managing Director Danny Kaufman and Director Christopher Knight with Managing Director Jeff Bucaro and Director Nicole Aguiar arranged a $140 million refinancing for Gallagher Way, a recently completed lifestyle mixed-use development. The development includes more than 93,000 square feet of office space, 85,100 square feet of retail space, the 173-room Hotel Zachary and an open-air entertainment plaza, all adjacent to Wrigley Field.

JLL represented borrower Hickory Street Capital, Chicago, the real estate arm of the Chicago Cubs owner  Ricketts family. Barings funded the 30-year fixed-rate loan, which replaced the current construction financing arranged by the same capital markets team in 2016.

Gallagher Way includes two towers; the six-story Tower 1 houses 47,000 square feet of retail space and 93,700 square of office space anchored by the Chicago Cubs front office and the American Airlines Conference Center. The seven-story Tower 2 is anchored by the Class A Hotel Zachary and contains 38,000 square feet of retail and entertainment space. The 30,000-square-foot Gallagher Way Plaza offers year-round programming for neighbors, Cubs’ fans and visitors. The plaza includes 8,000 square feet of green space and capacity for 1,000 seats or 3,000 standing guests for outdoor concerts and other events.

JLL also secured a $53 million bridge loan for Chelsea Square, a 113,600-square-foot office property in Manhattan’s Penn Plaza submarket. Ladder Capital, New York, funded the loan for HSP Real Estate Group, New York.

Chelsea Square is at 251 West 30th Street between 7th and 8th Avenues at the junction of the Chelsea, NoMad and Hudson Yards neighborhoods. The location places the property within steps of New York Penn Station and Madison Square Garden. Built in 1927, the building was significantly renovated in 2017 with flexible floorplates ranging from 5,000 to 8,000 square feet, exposed ceilings, polished concrete floors and outdoor terraces. 

JLL Managing Director Christopher Peck, Senior Director Peter Rotchford and Associate Kristen Knapp arranged the financing.