CEDARst Companies has secured financing for the recapitalization of 800-812 N. Clark Street, a two-phased, mixed-used development project in Chicago’s River North neighborhood. The 230-unit, $92 million project is comprised of the recently delivered redevelopment of the historic Bush Temple of Music and the future development of an adjoining, 16-story high-rise.
Quadrant Real Estate Advisors LLC, on behalf of its investment advisory client, has provided CEDARst with a construction to permanent debt facility. The terms of the facility include 3 years of interest-only payments which converts to a 30-year amortization schedule, both at a fixed interest rate.
CEDARst and affiliates will own 25 percent of the development alongside joint venture partners who will retain the remaining 75 percent ownership. Upon completion of the second phase of the development, CEDARst and its partners plan a long-term hold of both assets.
“This transaction represents a lot of hard work from many at CEDARst, its partners and the development team,” said managing partner Will Murphy. “The recapitalization will allow us to complete one of the first micro tower developments in the city and is structured for CEDARst to hold the asset over the long term. We are very bullish on the second phase, the unit mix and its location. It’s an architecturally significant project with a great history.”
Phase I of the project was focused on the adaptive re-use of the existing Bush Temple office property at 800 N. Clark with conversion to 101 units and 12,100 square feet of ground floor retail. The building is listed on the National Register of Historic Places and was honored by Landmarks Illinois this year for outstanding rehabilitation.
For Phase II, CEDARst plans to develop the land parcel at 810-812 N. Clark into a 16-story, multifamily high-rise with 129 apartments, a mix of micro studios and 1 bedrooms with approximately 500 square feet of retail space. The residential high-rise, will face Clark Street and will be connected to The Bush Temple redevelopment via a shared lobby. This will allow residents of both properties to access amenities at both locations and create the community lifestyle that the FLATS brand embodies.
The activated lobby features a coffee shop and community lounge with plans to feature a bar. Residents of both properties will also share access to The Bush Temple’s fitness center and 810-812 N. Clark’s roof deck with pool with 360 degree views of the city.