Owners of Chicago’s Aqua Tower Score $144M Refinancing

The ownership group for Chicago’s iconic 82-story Aqua at Lakeshore East secured a $144 million refinancing package for the residential portion of the tower.

The move effectively removes the 474-unit luxury skyscraper at 225 North Columbus Drive from the market after it was listed for sale in October. The refinancing was first reported by CoStar News, following an announcement by brokerage JLL. Magellan Development Group, the tower’s co-owner and original developer, confirmed the new financing arrangement this week.

An affiliate of Starwood Capital led the lenders of the new loan, which replaces a maturing debt package of about $145 million. The JLL team that arranged the loan included Danny Kaufman, Medina Spiodic, Rebecca Mitchell and Youngsoo Yang.

Magellan CEO David Carlins noted that the partnership opted for refinancing over a sale due to a strong belief in the building’s long-term value.

Ares Management, based in Los Angeles, holds the majority ownership stake in the residential units alongside Chicago-based Magellan. The joint venture originally acquired the apartment component of the tower in 2019 for $190.5 million, according to the publication.

Designed by Jeanne Gang of Studio Gang, the Aqua tower is the centerpiece of the 28-acre Lakeshore East master-planned development. The building features undulating white balconies and sits near Gang’s more recent 101-story St. Regis Chicago.

The refinancing specifically covers the 474 apartments and does not include the Radisson Blu hotel at the base or the condominiums at the top. These components are under separate ownership and were not part of the refinancing, according to the outlet.

Magellan has remained active in the Chicago market, recently partnering with Intercontinental Real Estate to acquire a 332-unit tower at 73 East Lake Street for $126.1 million. This follows its sale last year of the multifamily and retail portions of the building at 300 North Michigan Avenue for $122 million.

— Eric Weilbacher