Sterling Bay Lands $209M Construction Loan For McDonald's HQ
With less than two weeks remaining in 2016, Sterling Bay continues to make waves in what has been a breakout year for the firm. Yesterday, Sterling Bay scored a $209M construction loan for the McDonald's HQ it's building at the former Harpo Studios campus in the West Loop. It's the second-largest construction loan awarded to a Chicago area development since the recession, behind Related Midwest's $240M construction loan for One Bennett Park.
The loan serves as another sign that lenders will value developments with strong sponsorship and existing relationships in what has become a tighter lending environment. Associated Bank SVP Greg Warsek told Bisnow that developers who cultivated these relationships with lenders, and have an existing track record of delivering projects on time and on budget, will be given consideration for construction lending over those who used several lenders during the recovery.
HFF senior managing director Michael Kavanau, managing director Tim Joyce and associate director Christopher Knight led the debt placement team. Joyce said Sterling Bay's strong sponsorship, investment-grade credit profile, and the 500k SF, long-term lease McDonald's signed for the building made this loan a slam dunk. Sterling Bay is expected to deliver the building in spring 2018.