Chicago, IL (October 3, 2016) – Pearlmark announced the closing of a $14,000,000 mezzanine loan on 121 West Wacker Drive, a 41-story, Energy Star rated tower consisting of 441,000 square feet of office and ground floor retail space in Downtown Chicago. The asset is an architecturally significant Art Deco building built in 1929 and occupies a trophy location at the corner of Wacker Drive and LaSalle Street. The owner is a joint venture between G&I VIII Investment 221 N. LaSalle LLC and affiliates of Sterling Bay. The joint venture has recently completed a major redevelopment of the property and will continue to execute on its repositioning strategy.
Pearlmark’s investment is being made on behalf of Pearlmark Mezzanine Realty Partners IV, L.P. (“Mezz Fund IV”). Senior financing was provided by Mesa West.
Mark Witt, Managing Director of Pearlmark, arranged the transaction. Mr. Witt commented, “Sterling Bay has demonstrated the ability to reposition older office buildings to be attractive to employers and we are excited about the opportunity to invest in an iconic asset in a trophy location.”
Head of Debt Investments for Pearlmark, Douglas W. Lyons, further commented, “The combination of strong local sponsorship in Sterling Bay and a high-quality renovated office building in an outstanding location makes this a very attractive investment for our fund.”
Chicago-based Pearlmark is a private equity real estate investment firm that pursues domestic, value-added and core/core-plus strategies through institutional commingled investment vehicles and separate accounts. Since its inception in 1996, the firm has made more than 525 office, industrial, retail, multifamily, and mezzanine loan investments nationwide, representing a gross investment of over $12.8 billion. Pearlmark and its partners, including insurance companies, public and private pension funds, foundations and endowments, banks, corporations, and high net worth individuals and families, have committed over $4.6 billion of equity capital to the firm’s investment activities. For more information about Pearlmark and Mezz Fund IV, please visit www.pearlmark.com.