- The Iconic One Chicago towers may soon successfully secure CMBS refinancing.
- The $415M transaction aims to retire previous debt and support future project operations and income growth.
- Developers strategically responded to market dynamics to capitalize on Chicago’s rental market strength.
Chicago developers just finalized a record-breaking $415M refinancing deal for the One Chicago residential project, according to CoStar.
CMBS Refinancing
Developers of the One Chicago residential project are finalizing a $415M refinancing deal through commercial mortgage-backed securities (CMBS). The refinancing, supported by Wells Fargo, involves the two-tower complex located near Holy Name Cathedral. This transaction aims to retire previous construction debt and secure funding for the project’s future operations and income growth.
Record-Breaking Loan
Spanning 971 feet with 735 apartments and extensive commercial spaces, the One Chicago towers stand out as prominent fixtures in the Windy City skyline. The refinancing deal, envisioned as a 3-year interest-only loan at around 6% interest, signals confidence in the developer’s ability to capitalize on Chicago’s rental market strengths despite challenging conditions nationwide.
Seizing Opportunities
The refinancing of One Chicago underscores developers’ strategic response to market dynamics, maximizing equity while adapting to changing interest rates and sale prices. This substantial transaction not only secures the project’s financial stability but also reflects investors’ trust in the long-term success and growth potential of the iconic development.
