JLL arranged a $140 million refinancing for Gallagher Way, a recently completed lifestyle mixed-use development. The project comprises more than 93,000 square feet of office space and 85,100 square feet of retail space, along with the 173-room Hotel Zachary and an open-air entertainment plaza adjacent to Wrigley Field, which is prominently located in Chicago’s Wrigleyville neighborhood.
JLL worked on behalf of the borrower, Hickory Street Capital, the real estate arm of the Ricketts family, to place the 30-year, fixed-rate loan with Barings, one of the world’s largest real estate investment managers on behalf of one of its managed accounts. Loan proceeds will replace the current construction financing arranged by the same capital markets team in 2016.
Gallagher Way includes two towers. The six-story Tower 1, located at Waveland Avenue and Clark Street, houses 47,086 square feet of retail space and 93,667 square of office space anchored by the Chicago Cubs front office and the American Airlines Conference Center. The seven-story Tower 2, located at Addison Avenue and Clark Street, is anchored by the Class A Hotel Zachary and contains 38,014 square feet of retail and entertainment space.
The 30,000 square-foot Gallagher Way Plaza offers year-round programming for neighbors, families, Cubs fans and visitors. The plaza includes 8,000 square feet of green space and capacity for 1,000 seats or 3,000 standing guests for outdoor concerts, movies, an ice-skating rink and other events.
The JLL Capital Markets team representing the borrower was led by senior managing director Danny Kaufman and director Christopher Knight, along with managing director Jeff Bucaro and director Nicole Aguiar. The deal was secured by HFF prior to being acquired by JLL on July 1, 2019.