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Overview

Bank of China contributes $120 million USD to a $220 million USD syndicated loan to Sterling Bay for the 1K Fulton 2015 Refinancing and Renovation Project

Commitments (Constant USD, 2023)$125,543,806
Commitment Year•2015Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 1, 2015
End (planned)
Jan 1, 2016
End (actual)
Dec 31, 2015
Last repayment (originally scheduled)
Jan 31, 2020

Geospatial footprint

Map overview

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The loan was used to refinance a $150 million USD construction loan and to fund further costs on the conversion of 1K Fulton, a former storage warehousing facility being renovated into a 10-story office building with 531,194-square feet of space, located at 1000 West Fulton Market in Chicago’s West Loop bounded by Fulton, Carroll Avenue, Morgan, and Carpenter streets. Its exact address is 1029 W Carroll Ave, Chicago, IL 60607. More detailed locational information can be found at https://www.openstreetmap.org/way/1055858505

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Mesa West Capital, LLC
  • Morgan Stanley Real Estate Fund, Inc. (MSREI)

Receiving agencies

Private Sector

  • Sterling Bay, LLC

Loan description

Bank of China contributes to $220 million USD syndicated loan to Sterling Bay for the 1K Fulton 2015 Refinancing and Renovation Project

Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

In February 2015, a syndicate of three lenders — the Bank of China (BOC), Morgan Stanley Real Estate Fund, Inc. (MSREI), and Mesa West Capital, LLC — entered into a $220 million USD syndicated loan agreement with Sterling Bay, LLC — a Delaware-incorporated real estate developer based in Chicago, Illinois — for the 1K Fulton 2015 Refinancing and Renovation Project. This loan carried a maturity period of five years and a floating interest rate. Mesa West Capital originated the loan, which was divided among senior, junior, and mezzanine portions. BOC took the $120 million USD senior portion, while MSREI took $35 million USD in mezzanine debt and Mesa West Capital kept the $65 million USD junior debt portion. The proceeds were to be used by the borrower to refinance a $150 million USD construction loan and to fund further costs on the conversion of 1K Fulton, a former storage warehousing facility being renovated into a 10-story office building with 531,194-square feet of space, located at 1000 West Fulton Market in Chicago’s West Loop bounded by Fulton, Carroll Avenue, Morgan, and Carpenter streets. The building included a fitness center, rooftop deck, on-site auto detailing, a bike room and detailing and repair for bicycles, and a 156-space parking garage with electric charging stations.The loan allowed Sterling Bay to pocket cash after repaying the property's existing debt and additional project costs. Google signed a lease for 357,000 square feet for 1K Fulton, while Chicago-based investment firm Sandbox Industries and bike gear manufacturer SRAM International signed leases for smaller portions and Armour & Swift took a retail lease. 1K Fulton was nearly complete as of February 2015, with a projected opening in early 2016 for its tenants. Tenants moved in late 2015. In June 2016, American Realty Advisors purchased 1K Fulton for $257,000,000 USD.