In this market, a good construction loan is hard to find

John Murphy Development is on the hunt for a $45M loan, after taking over a 153-unit luxury apartment project under construction in Skokie

TRD CHICAGO /
Apr.April 15, 2020 10:56 AM
John Murphy, head of Murphy Development Group and a rendering of 8000 N. Lincoln Ave. (Credit: Murphy Development; rendering via Lucien Lagrange)

John Murphy, head of Murphy Development Group and a rendering of 8000 N. Lincoln Ave. (Credit: Murphy Development; rendering via Lucien Lagrange)

One of Chicago’s most active development firms has acquired a 153-unit luxury apartment project in Skokie, and is now on the hunt for a construction loan amid the economic tumult the pandemic has created.

John Murphy, head of Murphy Development Group, is looking for a $45 million loan to build the 12-story complex at 8000 N. Lincoln Ave., according to Crain’s. The company took over the $73 million project from developer Norm Hassinger and Greenspire Capital, which had collaborated with Skokie officials on the development, and began work in May 2018, the outlet reported.

The project, called the Lucien Lagrange, would have 14,300 square feet of retail and was expected to be completed in December 2019, according to its website. The village agreed to kick in $5 million in tax-increment financing.

While foundation work has been done and the garage nearly finished, the construction loan was never obtained. With the coronavirus having seized up the U.S. economy, lending markets have clamped down and thousands of commercial real estate borrowers are now looking for help to make their monthly mortgage payments. Loan servicers are working with borrowers on existing loans and are scrutinizing the impact Covid-19 has had on their ability to pay, according to a recent TRD Talks Live panel that covered the current commercial mortgage brokerage industry.

Murphy told Crain’s that lenders are cautious, asking for “a couple of months to breathe” to allow for the crisis to subside, but he is hopeful.
Murphy is also in the middle of a $1 billion redevelopment of the long vacant Cook County Hospital in Chicago, where he will bring hotels, offices, and retail. Last year, Murphy also filed plans for an office building in Fulton Market that would include 96,000 square feet of office space and 10,000 square feet of ground-floor retail. [Crain’s] — Alexi Friedman


Related Articles

arrow_forward_ios
Mayor Lori Lightfoot has detailed plans to reopen offices and real estate services but the specific date remains in question. (Getty, iStock)

Ready, set…Chicago details office, retail, real estate services reopenings. But when?

Ready, set…Chicago details office, retail, real estate services reopenings. But when?
LaSalle Towers in Old Town (Credit: Google Maps)

Could coronavirus lead to Chicago condo deconversion resurgence?

Could coronavirus lead to Chicago condo deconversion resurgence?
2309 N. Janssen Avenue and 632 W. Deming Place (VHT Studios; Redfin)

Single-family homes dominate priciest residential sales of week

Single-family homes dominate priciest residential sales of week
Downtown Chicago hotel occupancy rates ticked up in the latest STR report, but they’re still below 27 percent. (Getty)

Occupancy rates at Chicago hotels are improving…slowly

Occupancy rates at Chicago hotels are improving…slowly
A century-old, 10,000-square-foot mansion in Lincoln Park sold for nearly half what the owner put into it. (Credit: Redfin)

Settling for less: Lincoln Park mansion sells at deep discount

Settling for less: Lincoln Park mansion sells at deep discount
Rep. Delia Ramirez and Gov. J.B. Pritzker (Credit: Joshua Lott/Getty Images)

Illinois legislators to vote on massive rent, mortgage relief package this week

Illinois legislators to vote on massive rent, mortgage relief package this week
Twice-convicted felon John Thomas and the former Sherman Hospital in Elgin (Credit: Google Maps)

Ex-con developer who bought Elgin hospital in line for big payday

Ex-con developer who bought Elgin hospital in line for big payday
Estein USA COO Lance Fair and JW Marriott Chicago (Credit: Estein; Google Maps)

JW Marriott is latest hotel at risk of default

JW Marriott is latest hotel at risk of default
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...