59-65 Oak St, Chicago
This rarely available Oak Street asset is located on one of the most celebrated luxury shopping streets in the U.S. and situated in Chicago’s Gold Coast neighborhood, just steps from Michigan Avenue. The 74 x 104 was vacated 100% at the closing, providing the Sponsor with the opportunity to completely redevelop the building into a truly unique luxury retail and restaurant space. The immediate vicinity boasts flagship stores from global fashion houses such as Prada, Lanvin, Tom Ford, Christian Louboutin, Buccellati, Hermès, Tods, and Barney’s New York. The collection of crowded upscale dining establishments and exclusive luxury retail brands along the surrounding streets affirm the Gold Coast as Chicago’s premier destination for the high-street lifestyle.
The record breaking land purchase price per SF presented a unique challenge here, as the sponsor had a strong preference to finance the acquisition and construction all at once, and on a non-recourse basis. Without cash-flow and with at least two years until stabilization, Excel turned to its’ non-traditional lenders for an offering that appreciated both the asset location and strong sponsorship, arranging a $60,000,000, 68% Loan to Value, 90% non-recourse acquisition and construction loan at an interest rate just over 4%.