The Grand Plaza project in River North has obtained $210 million in long-term financing–one of the largest apartment loans ever in the city and a big bet on the recovery of the downtown rental market.
At the beginning of the year, German lender EuroHypo AG provided the first mortgage on the luxury complex, located on the block bounded by Grand Avenue and State, Dearborn and Ohio Streets. Nearly 85 percent of the project’s 764 units are leased.
The loan closing was confirmed by former state Sen. William Marovitz, president of Chicago-based Cataldo/Marovitz LLC.
That company was a co-developer on the project with three local firms: Magellan Development Group Ltd., Near North Properties Inc. and U.S. Equities Realty LLC.
The project’s estimated value of nearly $300 million is boosted by its 100,000 square feet of retail space and parking for more than 1,000 cars.
The new financing pays off a $150 million construction loan from North Carolina-based Bank of America and most of a high-interest, $45 million mezzanine loan from Lehman Brothers.
The New York investment bank is staying in the deal with a new loan at a reduced interest rate.
Marovitz would not comment on the amount of that loan, which sources said was roughly $17 million to $20 million.
Bigger hotel: Elysian Development Group LLC has nearly doubled the proposed size of its Gold Coast luxury condominium hotel.
The new proposal, which must receive city zoning approval, calls for a 770-foot skyscraper on the southeast corner of Rush and Walton Streets.
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Under the original plan, a 502-foot tower would have been built on the site, sources familiar with the project said.
The new plan calls for a large driveway and turning area at the corner of Walton and State Streets, to the west of the proposed skyscraper. A second phase, a 385-foot tower, would be located at the corner of State and Delaware Place.
The number of units would more than double, to 368. The original plan would have included just 153 units, including 126 hotel suites.
David Pisor, chief executive of Chicago-based Elysian, could not be reached for comment
Cavenaugh to Fifield: Experienced multifamily developer Richard Cavenaugh is joining Chicago-based Fifield Cos.
The Evanston native was previously president of Chicago-based Whiteco Residential LLC. Cavenaugh, 43, will be a principal and chief operating officer of Fifield starting Jan. 1.
Merchandise Mart space: The Office of the Special Deputy Receiver has signed a 10-year lease renewal at the Merchandise Mart, according to Michael Bishop, senior vice president with Chicago-based tenant representative Equis Corp.
The non-profit corporation, which handles insurance insolvencies for the State of Illinois, will take about 75,000 square feet of space.
Whole Foods anchors project: Whole Foods Market Inc. has agreed to anchor a development that has been proposed by Imperial Realty Co. at Peterson and Cicero Avenues in the Forest Glen area. The upscale, Austin, Texas-based grocery chain will be the sole retail tenant, with a 40,000-square-foot store.
The project would also include 136 condominium units that would be built in two stages, said Al Klairmont, president of Chicago-based Imperial. Construction is to start late next year.