Chicago Developer Fulton St. Receives $233 Million Loan for Upcoming 400K SF Office Tower

Fulton St. Companies, a Chicago-based developer, has secured $233 million in construction financing for a new 400,000-square-foot office building at 919 W. Fulton. The building is set to become headquarters for Chicago-based real estate investor Harrison Street Real Estate Capital.

Why is this development different: The building is expected to be the first of its kind to break ground in Chicago in more than a year, and it is a rare example of a proposed office building lining up an anchor tenant and construction debt at a time when many lenders are backing away from the office sector.

The context that helped the project: The Fulton St. development is able to move forward because of the strength of the Fulton Market neighborhood, the flight to quality by tenants, and the confidence of the endeavor’s partners. The building is also benefiting from a dearth of new office space in Chicago, which Alex Najem, Fulton’s CEO, expects will continue when construction is completed in 2025.

Market signs: The Fulton St. development is a significant addition to the Chicago office market, and it is a sign of confidence in the future of the city's Fulton Market neighborhood. The project is also a testament to the resilience of the office sector, even in a challenging economic environment.

The project's success will depend on a number of factors, including the continued strength of the Fulton Market neighborhood, the continued flight to quality by tenants, and the ability of the partners to execute on their plans. However, given the plan’s strong fundamentals, it is well-positioned to succeed.