In a climate where construction loans are hard to come by, Fulton Street Companies has managed to secure financing for a nearly $300 million office building in Chicago's Fulton Market District.
This feat is particularly impressive given the current economic landscape, characterized by high interest rates and a surplus of available office space due to the remote work trend. So, what does this mean for the commercial construction industry, and what can construction workers expect from this massive project?
The Financing Details
Chicago Yimby states that the venture led by Fulton Street Cos. closed on a loan estimated to be close to $200 million. Bank OZK, based in Little Rock, Ark., provided the senior portion of the debt, while the junior or mezzanine portion came from Toronto-based investment firm Manulife. This financial backing will enable the construction of an 11-story, 400,000-square-foot office building at 919 W. Fulton St.
Why This Project is a Big Deal
Securing a construction loan of this magnitude is no small feat, especially in a tight lending environment. The project is also a testament to the resilience of the Fulton Market area, which has remained a hotspot for office leasing, attracting high-profile tenants like Boston Consulting Group, Greenberg Traurig, and Norton Rose Fulbright.
What Construction Workers Can Expect
Scope of Work
The project is not just another office building; it's a complex, multi-faceted development. Construction workers can expect to be involved in various aspects, from foundational work to intricate interior detailing. The building will feature:
- Rise 11 stories and 153 feet in height
- 350,000 square feet of office space
- Retail on ground floor
- Large multi-story atrium
- Outdoor terraces
- 80 vehicle underground parking garage
- a large multi-story atrium, outdoor terraces, and an 80-vehicle underground parking garage
Safety Measures
Given the scale and complexity of the project, safety will be a paramount concern. Workers can expect rigorous safety protocols to be in place, including regular inspections and mandatory safety training sessions.
Technological Involvement
The project is likely to involve the use of advanced construction technologies, from project management software to cutting-edge building materials. This will provide an opportunity for workers to upskill and familiarize themselves with the latest industry trends.
The Anchor Tenants
Harrison Street Real Estate Capital is set to be the anchor tenant, leasing about 150,000 square feet. Gibsons Restaurant Group will also open a 15,000-square-foot location in the new building. These tenants indicate the building's mixed-use nature, adding another layer of complexity to the construction work.
Conclusion
The Fulton Street Cos. project is a beacon of optimism in a challenging market. For commercial construction workers, it represents not just employment opportunities but also a chance to be part of a landmark project that could set the tone for future developments.
DataBid is currently reporting on this project - 919 W. Fulton Market Multi Use Redevelopment - Chicago (0078072219)
