Press Releases

Monroe Capital Opportunistic Private Credit Group Provides Financing for Sterling Bay and Magellan Development Group’s Mixed-Use Tower Development on Michigan Avenue in Chicago

Chicago, IL, July 20, 2020

Monroe Capital LLC (“Monroe”) today announced its Opportunistic Private Credit group closed on a $24.5 million mezzanine loan for the development of 300 N. Michigan Avenue in Chicago, Illinois. Monroe partnered with Pearlmark on the transaction. The Sponsor is a JV between Sterling Bay and Magellan Development Group, two of the most prominent developers in Chicago.

Located between the City’s Riverwalk and Millennium Park, 300 North Michigan Avenue is a $250 million, 47-story, mixed-use development that will contain 289 residential units, 25,000 square feet of flagship retail and 280 hotel rooms presold to citizenM.

“We are appreciative of Monroe and Pearlmark’s efforts to close on a complex transaction during an extremely challenging time,” said Andy Gloor, CEO of Sterling Bay. “Monroe and Pearlmark were able to mobilize quickly with their real estate and structuring expertise to get the transaction closed efficiently.”

“We are excited to partner with Sterling Bay and Magellan, two world-class developers, on a project that will be an iconic addition to the Downtown Chicago Loop,” added Ted Koenig, President and CEO of Monroe Capital. “We are also pleased to partner with Pearlmark as a co-lender on this transaction.”

This transaction is representative of Monroe Capital’s Real Estate Finance vertical within the Opportunistic Private Credit group. The vertical focuses on complex and special situation structured debt and equity financings covering all asset types and geographies. The team has a broad investment mandate, flexible capital and prides itself not only on its “bottoms up” real estate expertise but also on its ability to move quickly and efficiently and provide certainty of execution. For over 17 years, the firm has been investing in asset-backed transactions with attractive collateral, as well as cash flow and enterprise value based loans.