JLL Arranges $215.1M Financing for Canal Station Office Redevelopment in Chicago’s West Loop

by Jeff Shaw

CHICAGO — JLL has arranged $215.1 million in financing for the redevelopment of 801 S. Canal St., a 684,000-square-foot office building in Chicago’s West Loop neighborhood. The borrower is New York City-based 601W Cos.

Once completed, the creative office space will be rebranded as Canal Station. The redeveloped property will feature open floorplates and continuous glass windows on its exterior. Amenities will include a fitness center, tenant lounge, conference center, outdoor terraces and lobby. The building will offer 376 parking spaces.

JLL represented the borrower in securing the senior loan through Bank OZK and a mezzanine loan and preferred equity through Lionheart Strategic Management LLC on behalf of Milestone Asset Management. 601W Companies’ development portfolio in Chicago consists of The Old Post Office, Prudential Plaza and Aon Center.

Keith Largay, Lucas Borges and Ryan Sullivan led the JLL Capital Markets team representing the borrower.

Other office tenants in Chicago’s West Loop neighborhood include Uber, Walgreens and Home Chef. The property is further benefited by Chicago’s vast transportation network with access to interstates 90, 94, 290 and 55 and four L Train lines.

The redevelopment of Canal Station will continue the transformation of the West Loop and will be a sister property to The Old Post Office located just two blocks away. The $800 million, 601W-led redevelopment in 2014 is regarded as one of the most successful and largest office redevelopments in the country, totaling 2.5 million square feet. The historic building, originally constructed in 1921, currently sits at 95 percent occupancy.

— Channing Hamilton

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