Tree Street Group, working with development partners Magellan Development Group and Mark Goodman & Associates, has closed construction financing for 410 N. Elizabeth, a planned 33-story multifamily high-rise in Chicago’s Fulton Market neighborhood. The project marks the first phase of a two-tower, mixed-use development planned for the site.
The building is positioned to be Chicago’s first all-electric, geothermal multifamily high-rise. According to the development team, the design centers on a geothermal energy system that is expected to deliver significant energy savings compared with a conventional mechanical plant. The property will include a residential mix of 38 studios, 87 one-bedroom units, 256 two-bedroom units and two three-bedroom apartments.
The capital stack for 410 N. Elizabeth includes a senior construction loan provided by Bank OZK. Junior capital was supplied by Beach Point Capital and Circle Property Partners, adding layered financing behind the senior loan. Specific loan amounts and terms were not disclosed.
The geothermal system played a direct role in shaping the project’s financing. Infinite Energy Partners is providing additional capital tied to the building’s geothermal infrastructure and will own and operate the system once the project is delivered. The developers report that the system, together with other design measures, is expected to reduce the building’s energy use by approximately 60%, supporting the fully electric building strategy.
Archeo Design Studio is serving as the architect of record for 410 N. Elizabeth, guiding the tower’s design and integration of the geothermal system into the broader building program. Clark Construction Group has been engaged as the project’s general contractor and will oversee construction of the high-rise.
The financing closing moves the first tower of the two-phase mixed-use plan in Fulton Market into the construction-ready stage. With the combination of senior and junior capital in place, as well as a dedicated owner-operator for the geothermal infrastructure, the development team has established a structure intended to support both the build-out of the residential program and the long-term performance of the building’s all-electric, energy-efficient systems.
