$233M financing arranged for Fulton Market office development

CHICAGO, Oct. 4, 2023 – JLL Capital Markets announced today that it has arranged $233 million in financing for the development of 919 on Fulton, a 373,000-square-foot creative office development in the Fulton Market neighborhood of Chicago, Illinois.

JLL worked on behalf of the borrower, Fulton Street Companies and JDL Development, to secure the construction financing through Bank OZK and Manulife Investment Management.

Upon completion in 2025, 919 on Fulton will feature 350,000 square feet of trophy office and 23,000 square feet of high-street retail. In addition, the development will feature top-of-the-line amenities, including a full-service fitness center, yoga studio, expansive private outdoor terrace space, a shared rooftop terrace with protected views of the skyline, tenant lounge, custom conference room, and bike storage. 919 on Fulton is anchored by Harrison Street Real Estate and Gibson's Bar & Steakhouse.

The development is located at 919 West Fulton St. directly adjacent to the Morgan "L" station providing convenient access to the Green and Pink lines. This location is in the heart of Fulton Market, which is Chicago's premier mixed-use district, featuring a diverse mix of luxury residences, creative offices, art galleries, critically acclaimed restaurants, hotels and high-end boutique retailers.

The mixed-use nature of Fulton Market coupled with the new construction inventory in the submarket has garnered unparalleled tenant demand for office product in the neighborhood. However, a slowing construction pipeline and continued tenant demand drove down inventory availability, particularly in product delivered since 2015. According to JLL’s Q2 Chicago Office Insights, Fulton Market is home to approximately seven million square feet of office inventory and leads the city in absorption, particularly in the Class A subtype. The project will be the only office development in Chicago beginning construction during 2023 and is poised to capture significant tenant demand.

The JLL Capital Markets team representing the borrower was led by Senior Managing Director Keith Largay, Director Philip Galligan and Associate Tara Hagerty.

"The execution of this transaction in today's capital markets environment demonstrates the resiliency and outperformance of creative office in mixed-use submarkets not only within Chicago, but throughout the nation,” Largay said. “Investors remain interested investing in and tenants remain focused on occupying best-in-class assets in thriving, mixed-use neighborhoods.”

“919 on Fulton is a remarkable development and we are pleased to once again partner with JDL and their partners to provide financing for this marquee project,” said Ako Dickson, Managing Director of Originations at Bank OZK. “Our lending focus is on best-in-class assets in best-in-class submarkets and 919 on Fulton certainly delivers.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL’s newsroom.

Founded in 1993 by Jim Letchinger, JDL has become Chicago’s premier residential developer. For over three decades, JDL has earned a reputation for developing dynamic residential developments that exceed expectations in the discerning luxury market, resulting in some of the most significant real estate sales in Chicago. By focusing on residential, mixed-use development, JDL creates living environments of the highest quality that complement the existing urban landscape. The company’s legacy properties stand tall among the crowded skyline.

Fulton St. Companies is a Chicago-based real estate development company specializing in the Fulton Market District. The company acquires and develops commercial and residential properties that they feel can add to the unique qualities of the neighborhood. FSC partners with family offices and institutions as well best-in-class general contractors, architects, and law firms to bring its vision to fruition.

Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides financing on commercial real estate projects throughout the nation. RESG is considered a preeminent, market-leading construction lender focused on senior secured financing for a variety of property types including mixed use, multifamily housing, condominiums, office, hospitality, life sciences, industrial and retail. During the five years ended June 30, 2023, RESG originated approximately $40.6 billion in new loans. For more information, visit ozk.com.