Chicago Multifamily Tower Lands $149M Refi Loan

The Gallery on Wells is a recently completed 40-story residential building situated in the River North submarket.
The Gallery on Wells

Square Mile Capital Management LLC originated a $149 million loan to refinance The Gallery on Wells, a 442-unit multifamily building in Chicago’s North Side that was developed in 2017.

The owners, a joint venture between Magellan Development Group LLC, Wanxiang America Real Estate Group LLC, MAC Management and Strand Advisors, developed the property at 637 North Wells St. and refinanced it to pay existing debt and equity on the asset. The original financing was a $100.2 million loan originated by Ullico, which was set to close at the end of this year, according to Yardi Matrix.

Peter Marino and Molly Green of CBRE’s Capital Markets Group in Chicago arranged the debt transaction.

“We are pleased to build upon a successful lending relationship with Magellan, Wanxiang, MAC Management and Strand Advisors, all of which have had a significant impact on the city of Chicago through their strong expertise. The sponsorship team has consistently brought high quality assets to this market, and The Galley on Wells is no exception,” Square Mile Capital Principal Sean Reimer said in a prepared statement.

Building Retail, Amenities

The 500,450-square-foot building has about 6,500 square feet of retail which has been leased to Dollop Coffee Co., Noveau Départ Nail Studio and Veggie Grill, a fast casual restaurant offering vegan cuisine. With a focus on the arts, the building also has an artist in residence.

The property features an outdoor pool and pool deck with hot tub, cabanas, fire pits and grilling stations. Indoor community amenities include a fitness center, sauna, lounge, game room and work stations. The building also has 108 parking spaces and electric car charging stations.  The Gallery on Wells’ unit mix ranges from studios to three-bedrooms, with monthly rents starting at $1,860.

In April, The Gallery on Wells was ranked as No. 2 in the Top 10 largest multifamily completions in the Midwest, according to Yardi Matrix data. It also placed Magellan on the Top 10 Apartment Owners in Chicago, coming in at No. 7 on a list published in August 2017.

Image courtesy of Square Mile Capital Management