Pearlmark Closes on Bakers Place

Chicago, IL (December 23, 2022) – Pearlmark announced that it closed on a $21.2 million mezzanine debt investment for the development of Bakers Place, a 206-unit mass-timber luxury apartment project in the heart of the Isthmus corridor in Madison, Wisconsin. The property will consist of 206 units and 8,400 square feet of retail space.

The investment was made on behalf of Pearlmark Mezzanine Realty Partners V, L.P. (“Mezz V”). The senior loan was provided by Bank OZK. Wisconsin-based sponsors, The Neutral Project and Compass Properties, are collectively the developer of the project. Mike Brady and Phil Galligan with JLL represented the sponsors as advisors in the project capitalization.

Bakers Place plans to incorporate green roofs, exposed mass timber, enhanced ventilation, and natural materials, which are estimated to reduce carbon emissions by 42% compared to conventional construction techniques.

Mark Witt, Managing Director of Pearlmark, arranged the transaction for Pearlmark. Mr. Witt commented, “We are excited about this investment since it will add a luxury apartment development to the Madison market which has seen significant job creation. Additionally, we were attracted to this investment by the development team’s focus on new sustainable living environments.”

Doug Lyons, Managing Principal and Head of Debt Investments for Pearlmark, further commented, “We believe this 14-story luxury apartment tower, constructed of mass timber with dramatic lake views, will be an architecturally significant addition to the Madison skyline and well-received by the community for its sustainability and outstanding live-work location.”

Pearlmark is a Chicago-based investment firm that targets domestic core to value-add real estate opportunities via commingled funds, separate accounts, and joint venture structures. Since 1996, Pearlmark has sponsored more than a dozen real estate equity and debt investment programs and completed 567 real estate equity and debt transactions on behalf of investors, representing $5.3 billion in equity capital commitments and $13.8 billion in gross investment value. Pearlmark is dedicated to creating value for its investors and offers a range of investment opportunities nationwide across various property types (office, industrial, multifamily). For more information, please visit