De­vel­op­ers lock up fi­nanc­ing for Michi­gan Av­enue tower

Chicago Sun-Times - - TOP NEWS - BY DAVID ROEDER, BUSI­NESS & LA­BOR RE­PORTER droeder@sun­times.com | @Roed­erDavid

In a bold bet on a real es­tate re­vival and vic­tory over the pan­demic, de­vel­oper Ster­ling Bay said Thurs­day it has closed on $174.5 mil­lion in fi­nanc­ing to start con­struc­tion at 300 N. Michi­gan Ave.

In part­ner­ship with Mag­el­lan De­vel­op­ment Group, Ster­ling

Bay plans a 47-story build­ing with 289 res­i­dences. It also will in­clude a 280-room ho­tel to be pur­chased by the cit­i­zenM brand upon com­ple­tion of the build­ing, ex­pected in about two years.

Con­struc­tion is due to start in Au­gust. Ster­ling Bay CEO Andy Gloor said his team over­came many hur­dles to se­cure fi­nanc­ing when wor­ries about the econ­omy have put other con­struc­tion plans on hold.

In the case of ho­tels, new con­struc­tion is al­most un­think­able now be­cause COVID-19 shut­downs have caused de­mand for rooms to plum­met. Many ex­perts think it may take years for tourism to re­bound, as­sum­ing a vac­cine or ef­fec­tive treat­ment makes travel and large-scale gath­er­ings at­trac­tive again.

Ex­ec­u­tives said the project’s prom­i­nent lo­ca­tion near Mil­len­nium Park on Chicago’s best-known street­wall makes the deal a sound in­vest­ment de­spite the cur­rent cri­sis. The lower lev­els will of­fer 25,000 square feet of what Ster­ling Bay called “flag­ship re­tail space.”

“Se­cur­ing a con­struc­tion loan of any dol­lar amount in to­day’s busi­ness cli­mate is a feat, but to se­cure fi­nanc­ing of this mag­ni­tude — es­pe­cially for a property that in­cludes sig­nif­i­cant in­volve­ment of a ho­tel op­er­a­tor — is al­most un­heard of,” said Stephen Quazzo, CEO of Pearl­mark Real Es­tate.

Mag­el­lan De­vel­op­ment Group and Ster­ling Bay plan a 47-story build­ing with 289 res­i­dences at 300 N. Michi­gan Ave.

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