601W Cos. Secures $215M Redevelopment Funding

801 Canal Street

601W Cos. has secured $215 million in financing for the redevelopment of 801 South Canal St. in Chicago. The property will be transformed into a 700,000-square-foot office building in the Southwest Loop neighborhood.

Lionheart Strategic Management LLC, an affiliate of Fisher Brothers, originated a mezzanine loan and preferred equity on behalf of Milestone Asset Management. The mezzanine loan totals $67.6 million. On top of that, Bank OZK provided an additional $147.5 million in funding through a senior loan.

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801 South Canal St. was originally purchased by 601W Cos. in early 2020 for $68 million, according to CommercialEdge data. The building was constructed in 1989 and sits on 4.9 acres.

Located near Union Station, the redevelopment is one block away from 601W Cos.’ renovated Old Post Office building. The historic structure was purchased in May 2016. After $1 billion in updates, the asset is now 95 percent leased, with a 3.5-acre urban rooftop oasis and 18,000 square foot food hall.

Bank OZK and Lionheart have also announced a partnership for a residential development in Miami, for which they will provide $150 million in funding. For the 801 South Canal St. financing, Andy Klein and Sang Kim led the transaction for Lionheart.