George Smith Partners secured the permanent financing for the acquisition of a 5,666 square-foot luxury, high-street retail parcel located at 909 N. Michigan Ave. in Chicago’s Magnificent Mile Shopping District. The three luxury retail tenants include Bulgari, Omega Watches, and Chicago’s own Burdeen’s Jewelry.

Director Robert Horton secured the $14,100,000 loan on behalf of the sponsor, Blatteis and Schnur, Inc. of Los Angeles. During the closing process, the bond market experienced considerable volatility with the fallout from Silicon Valley Bank and First Republic.

Horton was able to hold proceeds on the loan and closed the five-year fixed rate note with full-term interest only. The sponsor purchased the retail parcel from the owner of the Westin Michigan Avenue Chicago for $27,300,000, or approximately $4,818 per square foot.

“During the closing process, we encountered the fallout of two banks collapsing, causing a seismic shift to bond market volatility prior to funding of the loan, said Horton. “We were able to hold firm on proceeds and execution by leveraging our lender relationships and augmenting with appropriate structure.”