Pearlmark has provided a $24.2 million debt investment to support the acquisition of 1201 W Lake Street, a mid-rise office property in Chicago, Illinois. The seven-story building totals 141,771 square feet and is positioned within the Fulton Market neighborhood, one of Chicago’s most active office and mixed-use districts.
The financing was originated and structured on behalf of Pearlmark Realty Senior Mortgage Partners I, L.P., a vehicle focused on real estate credit. The debt investment is tied specifically to the acquisition of the property, aligning the fund with a recently traded office asset in a core Chicago submarket.
The buyer of 1201 W Lake Street is Spear Street Capital, a San Francisco-based real estate investment manager. Spear Street Capital focuses on office and related property types, and the transaction expands its footprint with an institutional-quality office building in Chicago. While the parties did not disclose additional loan terms, the transaction underscores the continued role of private debt capital in funding office acquisitions.
The property is currently 86% occupied, providing an in-place income profile for the new ownership and lender. The building is described as institutional in quality, which, along with its occupancy, likely supports the underwriting for the debt investment and the business plan that Pearlmark referenced in connection with the transaction.
Access to transportation is a key feature of 1201 W Lake Street. The building is located near the CTA Green and Pink Lines at Morgan Station, offering direct rail connectivity. It is also in proximity to Ogilvie Transportation Center and Union Station, two of Chicago’s primary commuter rail hubs, giving the property strong access to workers arriving from throughout the metropolitan area.
Mark Witt, Managing Director of Pearlmark, led the transaction. He noted that the firm was pleased to execute the investment in its “backyard” of Chicago, highlighting Pearlmark’s local presence in the market. He cited the building’s Fulton Market location, its institutional-grade profile, and the backing of a strong sponsor as key factors behind Pearlmark’s interest in the deal.
The closing of this debt investment adds a stabilized, transit-accessible Chicago office asset to Pearlmark Realty Senior Mortgage Partners I, L.P.’s portfolio. For Spear Street Capital, the acquisition provides exposure to a sizable and well-leased office building in a Chicago submarket that has attracted sustained tenant and investor attention in recent years, supported by its connectivity and evolving mix of office, dining, and lifestyle offerings.
