HFF Arranges $209 Million Construction Loan for the Future Global Headquarters of McDonald’s Corporation in Chicago’s Fulton Market District

CHICAGO--()--Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged a $209 million construction loan for the development of 110 North Carpenter, the 567,000-square-foot future global headquarters of McDonald’s Corporation located in Chicago’s Fulton Market District.

HFF worked on behalf of the developer, a partnership comprising Sterling Bay and institutional investors advised by J.P. Morgan Asset Management, to place the construction loan with Bank of America and Wintrust Financial. HFF previously worked on behalf of the developer to secure construction financing through Bank of America for the Fulton West project, located six blocks northwest of 110 North Carpenter.

Scheduled for delivery in Spring 2018, 110 North Carpenter will consist of 485,000 square feet of office space as well as ground floor retail and underground parking. The building will also feature private outdoor terraces and a rooftop deck. McDonald’s Corporation will relocate from its campus in Oak Brook to the nine-story creative office building, which will occupy the site previously home to Oprah Winfrey’s Harpo Studios. 110 North Carpenter is located just two blocks from the Morgan Street “L” station, providing connections to every major line in Chicago. The building also has superior access to the entire Chicagoland area being located less than one mile from Interstates 90, 94 and 290, Chicago’s primary interstates. Additionally, tenant shuttle service to the two downtown commuter rail stations will be provided from 110 North Carpenter.

The HFF debt placement team representing the borrower was led by senior managing director Michael Kavanau, managing director Tim Joyce and associate director Christopher Knight.

“Due to the long-term lease and investment grade credit profile of this development as well as the best-in-class sponsorship and location, we received very strong interest from the lending community and were able to deliver terms and conditions superior to a traditional construction loan,” said Joyce.

About Sterling Bay

Sterling Bay is a Chicago-based developer, investor, builder and innovator of real estate. The firm currently owns a portfolio of more than seven million square feet and actively invests in opportunistic and value-added real estate. www.sterlingbay.com

About J.P. Morgan Asset Management – Global Real Assets

J.P. Morgan Asset Management – Global Real Assets has more than $96 billion in assets under management and more than 400 professionals in 20 offices throughout the Americas, Europe and Asia Pacific, as of September 30, 2016. With a 45-plus year history of successful investing, J.P. Morgan Asset Management – Global Real Assets’ broad capabilities provide many of the world’s most sophisticated investors with a global platform of real estate, infrastructure and transportation strategies driven by local investment talent with disciplined investment processes consistently implemented across asset types and regions. For more information: jpmorgan.com/institutional/global_real_assets

About HFF

HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

Contacts

HFF
MICHAEL KAVANAU, (312) 528-3650
HFF Senior Managing Director
mkavanau@hfflp.com
or
TIMOTHY JOYCE, (312) 528-3650
HFF Managing Director
tjoyce@hfflp.com
or
KRISTEN MURPHY, (617) 338-0990
HFF Director, Marketing
krmurphy@hfflp.com

Release Summary

HFF has arranged a $209 million construction loan for the development of 110 North Carpenter, the 567,000-square-foot future global headquarters of McDonald’s Corporation in Chicago.

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Contacts

HFF
MICHAEL KAVANAU, (312) 528-3650
HFF Senior Managing Director
mkavanau@hfflp.com
or
TIMOTHY JOYCE, (312) 528-3650
HFF Managing Director
tjoyce@hfflp.com
or
KRISTEN MURPHY, (617) 338-0990
HFF Director, Marketing
krmurphy@hfflp.com