George Smith Partners secured permanent financing for the acquisition of a 5,666-square-foot luxury, high-street retail parcel located at 909 N. Michigan Ave. in Chicago’s Magnificent Mile Shopping District. The three tenants include Bulgari, Omega Watches, and Burdeen’s Jewelry from Chicago itself. Director Robert Horton obtained the $14,100,000 loan on behalf of sponsor Blatteis and Schnur Inc., based in Los Angeles.
During the closing process bond market volatility increased due to Silicon Valley Bank and First Republic collapsing which caused considerable disruption to proceedings prior to funding the loan; however, Horton was able to hold proceeds on the loan by leveraging lender relationships as well as augmenting with appropriate structure resulting in a five year fixed rate note with full-term interest-only being closed successfully despite these difficulties encountered during this period.
The purchase price for this retail parcel was $27,300,000 or approximately $4,818 per square foot from owner Westin Michigan Avenue Chicago.
“We experienced significant disruption due to two banks collapsing causing an increase in bond market volatility before we were able to fund our loan,” said Horton “However we managed to maintain our proceeds and execution through leveraging our lender relationships while also incorporating suitable structures.”
