Pearlmark Closes $22.0 Million Preferred Equity Investment in Chicago, IL

Chicago, IL (May 26, 2016) – Pearlmark today announced it has closed on a $22.0 million preferred equity investment for the development of a 30-story, 466,000 square foot mixed-use apartment and retail complex in the West Loop submarket of downtown Chicago. The investment was originated by Pearlmark Real Estate and made on behalf of Pearlmark Mezzanine Realty Partners IV, L.P. (“Mezz IV”) and Newport Beach based insurance company Pacific Life. 1035 West Van Buren is being developed by Related Midwest. 

 The property is located at 1035 West Van Buren, and upon completion will consist of 300 apartment units and 20,000 square feet of amenities, including 12,800 square feet of retail and 333 parking spaces.  The property’s West Loop location offers residents easy access to public transportation, neighborhood parks and various retail amenities.  Additionally, it is in close proximity to several major employers, including the University of Illinois-Chicago, Rush University Medical Center, and the new Google regional office center in the nearby Fulton River district.

 Mark Witt, Managing Director of Pearlmark, arranged the transaction.  Mr. Witt commented, “The West Loop is one of the most popular downtown neighborhoods in Chicago, with an ideal location relative to the Loop and a variety of amenities.  This project offers us the opportunity to invest in a new apartment project with a strong sponsor in an ideal location that is continuing to attract young professionals who want to live and work downtown.” 

Douglas Lyons, Head of Debt Investments for Pearlmark, further commented, “We are thrilled to partner with Related Midwest on this project given its outstanding location and Related’s demonstrated track record for delivering superior product.  1035 Van Buren will be a strikingly attractive addition to Chicago’s skyline.”

Mezz IV announced its initial closing in June 2015.  It is the firm’s exclusive mezzanine investment vehicle, fulfilling borrower demand for mezzanine debt solutions for refinancings, recapitalizations, acquisitions, and selective development projects.  Mezz IV is targeting a broad range of domestic commercial real estate assets and seeks to generate a net internal rate of return of 10% to 12% to Limited Partners over a three- to five-year investment holding period. 

ABOUT PEARLMARK

Pearlmark is a Chicago-based investment firm that targets domestic core and value-add real estate opportunities via commingled funds, separate accounts and joint venture arrangements.  Since inception in 1996, Pearlmark has sponsored more than a dozen investment programs for institutional and high net worth investors, and completed over 500 real estate equity and debt transactions representing $12.6 billion in gross investment value.  Pearlmark is dedicated to creating value for investors, and offers a range of investment opportunities across the various property types (office, industrial, retail, multifamily) in both local and national markets.  For more information please visit www.pearlmark.com.