Mission Capital Advisors announced that its 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 E. 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.
Sterling acquired property in March for $15 million. 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 said. “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 just off of Chicago’s Michigan Avenue, a vibrant shopping corridor within the city’s downtown, 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.