Mission Capital Arranges Thorofare Loan on Mag Mile Parcel
November 14, 2018
November 14, 2018
Mission Capital Advisors’ debt and equity finance group has arranged $13 million of non-recourse, floating-rate financing on behalf of an affiliate of the Sterling Organization. The loan recapitalizes 110 E. Pearson St., a 9,000-square-foot vacant retail property in the heart of the Magnificent Mile.
Thorofare’s willingness to provide financing stemmed from the firm’s recognition of the sponsor’s strong track record in value-add retail and the property’s desirable location, said Felix Gutnikov, the firm’s head of origination.
“We were able to offer Sterling Organization a structured financing solution for a well-located retail asset within one of the most recognized shopping districts in the country,” he said. Mission and Thorofare have completed several deals together.
Sterling lands $13M refi for retail space at Near North Side tower
The Thorofare Capital loan will help Sterling renovate and lease the former Bar Toma space
November 9, 2018
The Sterling Organization landed a $13 million refinancing on the retail space in a tower just off Michigan Avenue on the Near North Side.
The Palm Beach-based equity fund earlier this year bought the 9,000-square-foot retail portion at the base of the 57-story tower at 110 East Pearson Street for $15.2 million. The space is best known as the former home of Bar Toma, a restaurant that opened in 2011 and shuttered in January 2017.
Thorofare Capital supplied the non-recourse, floating-rate loan, which was arranged by Mission Capital Advisors’ Jonathan More, Alex Draganiuk, Lexington Henn, and Justin Hunt. Part of the proceeds will be used to find tenants and make “significant” capital improvements.
Now vacant, the property consists of 7,300 square feet on the ground floor and 1,800 square feet on the mezzanine level.
Sterling paid $1,616 per square foot for the space at the base of the tower, which was built in the 1970s.
It was the company’s second Downtown retail deal in a few months, following April’s $8.1 million purchase of the 87,100-square-foot office building at 219 South State Street, which also includes street retail currently occupied by three Foot Locker-brand shoe stores. It took out an $18.3 million loan from Los Angeles-based Karlin Real Estate to finance that purchase and planned renovations of the building.
In September, Sterling paid $20 million to acquire Hillside Town Center, a nearly 165,000-square-foot retail park in west suburban Hillside. It also bought the 101,000-square-foot Prairie Market shopping center in far west suburban Oswego, but would not disclose the purchase price.
Mission Capital Arranges $13M Loan for ‘Magnificent Mile’ Retail Property
November 14, 2018
CHICAGO, IL — Mission Capital Advisors‘ Debt and Equity Finance Group has arranged $13 million of non-recourse, floating-rate financing on behalf of an affiliate of the Sterling Organization to recapitalize 110 East Pearson Street, a 9,000-square-foot vacant retail property in the heart of the Magnificent Mile section of Chicago.
Jonathan More, Alex Draganiuk, Lexington Henn, and Justin Hunt of the Mission Capital team secured the loan from Thorofare Capital, a Los Angeles-based national commercial real estate loan origination and servicing company. The loan features a competitive leverage level with flexibility for future capital expense funding and leasing terms and will be used to capitalize the property, lease up the available space and implement significant capital improvements.
Currently vacant, the property consists of 7,303 square feet of ground-floor retail space and 1,789 square feet of retail space on the mezzanine level. For Mission Capital Advisors, the transaction reflects the firm’s ability to find appropriate capital providers for innovative developers across the country.
Thorofare’s willingness to provide financing stemmed from the firm’s recognition of the sponsor’s strong track record in value-add retail, as well the property’s desirable location, according to Felix Gutnikov, Thorofare’s head of origination.
“As a trusted lender, Thorofare has enjoyed a very positive relationship with Mission Capital Advisors and has completed several transactions with the firm and its clients,” Gutnikov says. “We were able to offer Sterling Organization a structured financing solution for a well-located retail asset within one of the most recognized shopping districts in the country.”
The property is ideally situated in the heart of Chicago’s Magnificent Mile, the city’s largest and most vibrant shopping district, which has approximately $1.9 billion of annual retail sales. Over the past year, the district has seen retail vacancies decline, while rents have grown by nearly seven percent, further underscoring the property’s latent potential.
Mission Capital Arranges $13M Loan for Chicago Retail Asset
The owner, an affiliate of the Sterling Organization, will use the financing to recapitalize the vacant property, which is part of the Magnificent Mile.
November 16, 2018
Mission Capital Advisors has arranged a $13 million floating-rate financing for a retail property is part of the Magnificent Mile, Chicago’s most vibrant shopping district. The owner, an affiliate of the Sterling Organization, will use the loan to recapitalize the vacant asset. Jonathan More, Alex Draganiuk, Lexington Henn and Justin Hunt of Mission Capital secured the floating-rate financing from Thorofare Capital.
The property is located at 110 E. Pearson St. and used to host the Bar Toma, which closed in 2017. It consists of 7,303 square feet of retail space on the ground floor and 1,789 square feet on the mezzanine level. According to Crain’s Chicago, the Sterling Organization fund bought the asset in the spring of 2018 for $15.1 million.
According to Mission Capital, vacancies in the Magnificent Mile have decreased during the last quarters, while rents have grown by approximately 7 percent, which highlights the property’s potential.