Joint Venture Receives $125M Construction Loan for Life Sciences Project in Chicago
CHICAGO — Sterling Bay, Harrison Street and institutional investors advised by J.P. Morgan Global Alternatives have secured a $125 million construction loan for ALLY, a life sciences project in Chicago. Bank OZK provided the financing. Construction is slated to begin this month.
Located at 1229 W Concord Place, ALLY will feature 280,000 square feet of Class A medical research lab and creative office space. The life sciences project will be in Lincoln Yards, a 53-acre, mixed-use development created by Sterling Bay.
Lincoln Yards was formerly an industrial site that is being redeveloped into a mixed-use community with build-to-suit office developments, retail opportunities, proposed 606 bike trail extension and future residential and hospitality opportunities. When complete, Lincoln Yards will feature affordable housing, create over 23,000 permanent onsite jobs and generate $4.1 billion in economic output for the city of Chicago.
ALLY at 1229 W Concord Place is located off the North Branch Chicago River and has private outdoor space on every floor. Mark Burkemper, senior managing director and head of North American transactions at Harrison Street, says the project brings many benefits.
“Lincoln Yards is close to several of Chicago’s most notable medical research institutions, and we are excited to expand our partnership with Sterling Bay to deliver high-quality, Class A lab space that will support Chicago’s growing life sciences market,” says Burkemper.
Chicago-based general contractor Power Construction is part of the development team and is focused on making sure the project meets the City of Chicago’s mandates for equitable contractor engagement. Global architecture firm Gensler will serve as the development’s lead architect.
“Chicago is an emerging market for biotechnology, supported by world-class academic institutions and a reputation for advanced medical research, but the city’s current inventory of superior lab space prevents the industry from reaching its highest potential here,” says Andy Gloor, CEO of Sterling Bay.
J.P. Morgan Global Alternatives is the $191 billion alternative investment arm of J.P. Morgan Asset Management. Sterling Bay is a Chicago-based real estate investment and development company. Harrison Street is a Chicago-based investment management firm.
In addition to ALLY, Sterling Bay and Harrison Street are venture partners on three other life sciences development and redevelopment projects, including a combined approximately 1.9 million square feet of corporate campus facilities in San Diego and Denver. All three of the projects are slated to break ground in 2022.
— Julia Sanders