Golub, Marquette Score New Loans on Chicago Multifamily

Two Chicago developers landed big refinancing packages to pay off their debts, highlighting lenders’ confidence in the city’s multifamily market despite a climate of tightening credit against commercial real estate.

In the bigger of the two deals, Naperville-based Marquette Cos. scored a $79 million loan to refinance Parq Fulton, a 278-unit apartment building at 1400 West Randolph Street in the West Loop that was completed last year, up from the original $65 million construction debt attached to the property, Crain’s reported. And Golub & Co. nabbed a $75.8 million loan for the 280-unit property at 8 West Chestnut Street, according to Cook County records.

The deals help show how commercial real estate players are adapting to rising borrowing costs, as the Golub debt package — which the firm obtained through a joint venture with CIM Group that acquired the property in 2017 — ends an effort to sell the building.

Marquette broke ground on the 278-unit Parq Fulton in 2020 right as the pandemic was getting underway. The firm predicted the market would bounce back, though, and in 2022 it did just that. Around the same time, the company also developed the nearby Evo Union Park, a nearby multifamily property that also recently scored a $104 million refinancing package.

With the $79 million Marquette acquired from MetLife against the Parq Fulton property, the landlord can pay off the $65 million construction loan from Bank OZK while pocketing much of the difference.

Meanwhile, Golub and CIM pulled off their refinancing deal for Chestnut Place through the lendering arm of multifamily giant Greystar, public records show. CIM and Golub also worked together to redevelop Tribune Tower as condos. They listed Chestnut Place for sale last year, but opted to refinance instead. When CIM bought its stake in the property, it was valued at upwards of $80 million.

While Golub didn’t return requests for comment, making its reasons for the move unclear, it’s possible there was an upcoming maturity date on the previous debt for nearly the same amount that was obtained when CIM entered the deal six years ago.

— Quinn Donoghue