Lionheart Strategic Management and Bank OZK are providing $215 million in funding to 601W Companies for the redevelopment of 801 South Canal Street, a Chicago office building.
Lionheart, a New York based asset manager and affiliate of Fisher Brothers, originated a $67.6 million investment in the form of a mezzanine loan and preferred equity on behalf of Milestone Asset Management. Meanwhile, Arkansas-based Bank OZK provided a $147.5 million senior loan.
The sponsor is planning to redevelop the South Loop building as the area gains traction with tenants. Those plans, along with the ability to work with Bank OZK, were key drivers for Lionheart’s interest in the deal, said Sang Kim, an associate at Lionheart.
The property is one block away from another 601W Companies project, a $1 billion renovation of Chicago’s Old Post Office building. The Old Post Office, which 601W Companies acquired in 2016, is now 95 percent leased.
This is not the first co-investment for the pair as Lionheart and Bank OZK recently announced its partnership to provide $150 million in funding to Two Roads Development for a residential development in Miami.