F
ifield Companies secured a $24.75 million refinancing for Luxe on Madison apartments in Fulton Market, overcoming challenges in Chicago's multifamily market and lending environment. MetLife Investment Management insured the loan for the 102-unit complex with 7,300 square feet of retail space. The deal, arranged by JLL's debt advisory arm, translates to $245,000 per unit excluding retail.

    The two-phase construction project began in 2009, but its total development cost remains unclear. Fifield took out a $12.7 million construction loan in 2013 and refinanced the property with CIBC bank for $27.5 million in 2017, suggesting they likely invested additional funds to retain ownership.

    The financing demonstrates confidence in Chicago's rental market, which has consistently ranked high in rent growth nationwide. Despite steady growth, lenders face challenges due to stubbornly high interest rates and competition from suburban multifamily markets. However, the property's location in Fulton Market, considered one of Chicago's most dynamic neighborhoods, gives lenders confidence.

    Fulton Market has been a bright spot in the city's office market, with Amsterdam-based Adyen securing nearly 97,000 square feet at Sterling Bay-owned 333 North Green Street. As demand for multifamily development grows, Sterling Bay pivoted from an 18-story office building to a 39-story, 570-unit apartment tower on the same site. The addition of Luxe on Madison will bring the neighborhood's estimated 2,000 units under construction or recently completed closer to reality.