Developer Steve Fifield’s Fifield Companies has secured a $177 million loan on one of the city’s most recognizable buildings, Chicago’s tallest west of the Kennedy Freeway, suggesting its value has jumped during the pandemic.
The 45-story elliptical luxury apartment property at the intersection of Madison and Halsted streets, known as 727 Madison, was completed in 2019 with F&F Realty Partners of Skokie as co-developer. The property was formerly a parking lot for the adjacent Crowne Plaza Hotel operated by F&F.
The refinancing of the 492-unit building indicates that its value has increased significantly since it was developed for about $141 million, according to Chicago building permit data. Other West Loop properties also rose in value amid the pandemic as Fulton Market demonstrated its resilience as a desirable office destination and developers put more than 9,000 apartments into various planning stages for the area, by far the most of any neighborhood in the city.
The 727 West Madison property was designed by FitzGerald Associates Architects, and the property was last mortgaged for $117 million on a Bank of the Ozarks construction loan in 2017, records show.
The most recent loan was provided by German loanee BayernLB. Neither the lender nor the owner responded to requests for comment.
This is the latest refinance for a new Chicago apartment building as owners line up loans amid rising interest rates. Although the maturity date is not clear from public records, the mortgage indicated that it was a variable rate loan, which means that the interest paid by the borrower could change during its term. duration.
Borrowers against other new apartments have recently secured short-term loans in hopes of avoiding further interest rate hikes to cash out their properties without selling them as the rental market remains attractive . CA Ventures has closed a $35 million loan maturing in 2024 for its 18-story, 80-unit redevelopment at 450 West Belmont Avenue in Chicago with LoanCore Capital. And an UrbanStreet Group and Atlas Residential company recently received a three-year, $67 million loan for its 256-unit The 450 suburban complex, built last year in Lombard, of Barings.