Manulife Investment Management Provides Mezzanine Financing for 373,000 SF Mixed-Use Property in Chicago

Rhea-AI Summary

Manulife Investment Management provides $120.1 million loan for Fulton Market project

Positive

• Manulife Investment Management has provided a $120.1 million mezzanine loan for the development of 919 on Fulton, a Class A office and retail project in Chicago's Fulton Market district. The investment aligns with the company's focus on real estate credit opportunities as a growth driver.

Negative

• None.

BOSTON, Oct. 10, 2023 /PRNewswire/ - Manulife Investment Management has announced that it has provided a $120.1 million mezzanine loan on behalf of its clients for a construction financing package to develop 919 on Fulton, a Class A, 373,000 square foot office and retail project located in the Fulton Market district of Chicago.

The investment aligns with Manulife Investment Management's strategic focus on global real estate credit opportunities as a growth driver for its business.

"The next few years should offer an attractive environment for private real estate credit. Investors will potentially benefit from opportunities where traditional financing supply is not meeting market demand. The Fulton Street transaction is an example where we swiftly developed a creative financing solution to capitalize the opportunity and facilitate construction of a high-quality asset in an irreplaceable location," said Marc Feliciano, Global Head of Real Estate for Manulife Investment Management.

Fulton Market is one of the strongest office submarkets in the U.S., having posted positive net absorption in 10 out of the last 11 years, according to CoStar data, as of October 2023. The central Fulton Market site benefits from proximity to Fulton Market's attractive amenities and convenient access to major transportation nodes. Upon completion in 2025, 919 on Fulton will feature 350,000 square feet of trophy office and 23,000 square feet of high-street retail.

"This investment represents a key differentiator of the real estate business at Manulife Investment Management – the ability to work with partners to find solutions in challenging environments. We will continue to be opportunistic in markets where our team sees attractive positioning through the use of proprietary data and research partnered with the application of on the ground knowledge," added Mr. Feliciano.

Manulife Investment Management's real estate platform provides investment solutions globally as part of its comprehensive private markets' capabilities. As of June 30, 2023, its sustainably operated platform offers core, core-plus, and value-add strategies spanning over 73 million square feet of office, industrial, retail, and multifamily assets strategically across Canada, the U.S., and Asia Pacific. The real estate investment team leverages its global platform and regional market knowledge to identify opportunities and drive results for its investment clients. 

Additional information about Manulife Investment Management's real estate capabilities can be found at manulifeim.com/institutional.

About Manulife Investment Management

Manulife Investment Management is the brand for the global wealth and asset management segment of Manulife Financial Corporation. Our mission is to make decisions easier and lives better by empowering investors for a better tomorrow. Serving more than 17 million individuals, institutions, and retirement plan members, we believe our global reach, complementary businesses, and the strength of our parent company position us to help investors capitalize on today's emerging global trends. We provide our clients access to public and private investment solutions across equities, fixed income, multi-asset, alternative, and sustainability-linked strategies, such as natural capital, to help them make more informed financial decisions and achieve their investment objectives. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/manulife-investment-management-provides-mezzanine-financing-for-373-000-sf-mixed-use-property-in-chicago-301952282.html

SOURCE Manulife Investment Management

FAQ

What is the investment amount provided by Manulife Investment Management?

Manulife Investment Management has provided a $120.1 million mezzanine loan.

What is 919 on Fulton?

919 on Fulton is a Class A office and retail project located in Chicago's Fulton Market district.

When will 919 on Fulton be completed?

919 on Fulton is expected to be completed in 2025.

How much office and retail space will 919 on Fulton have?

919 on Fulton will feature 350,000 square feet of office space and 23,000 square feet of retail space.

What is Manulife Investment Management's focus in real estate?

Manulife Investment Management focuses on real estate credit opportunities as a growth driver for its business.