A Chicago developer that converted two former lumber storage warehouses on the city’s Southwest Side into loft offices has landed a new loan to resolve a $33 million foreclosure suit and resume the project that includes opening a Latin America-focused brewery this year.
Condor Partners last month secured a $27 million loan from Westport, Connecticut-based Northlight Capital Partners for its Mural Park project in the Pilsen neighborhood, according to Cook County property records.
With the new debt, Condor has negotiated a discounted payoff of a loan from Ready Capital that was the subject of the $33 million foreclosure suit filed in 2023, Condor Partners Managing Partner Michael McLean Jr. told CoStar News.
With the project recapitalized, construction has resumed on the long-planned 5 Rabbit Cerveceria brewery and restaurant at the property. The brewery could open as soon as this summer, McLean said.
The new loan from a Northlight debt fund revives the project outside the downtown Chicago office market in a neighborhood known for its Latin culture and dining.
Unlike many landlords that have walked away from properties that have lost tenants and significant value since the onset of the pandemic in early 2020, McLean said Condor actively sought out new debt to resume the project even as many banks shied away from all office-related lending.
“Banks wouldn’t even consider lending on an office asset, even one that’s 75% leased, but we remained committed to the project,” McLean said. “We were never going to let our investors lose money or let down the community that we made promises to. We were too dedicated to the property to let it go. We made it clear that if anyone wanted the project, they were going to have to rip it away from us.”
New York-based Ready Capital did not immediately respond to requests for comment from CoStar News on Friday.
Art gallery plans
The developer gave Mural Park its name because of plans to create a gallery featuring Mexican art in the courtyard between the two office buildings. McLean said the firm plans to resume efforts to bring in public art as it resumes leasing efforts and interior construction.
Condor Partners has been working on the project since 2016, and plans for the brewery emerged in 2018.
Mural Park took a major step forward when Health Care Service Corp., the parent company of Blue Cross Blue Shield of Illinois, leased the entire four-story, 103,106-square-foot building at 920 W. Cullerton St. in the early months of the pandemic in 2020.
But with blocks remaining available in the six-story, 115,451-square-foot building at 924 W. 19th Place, the project was stalled financially after the foreclosure suit.
The refinancing gives Condor funds for tenant improvements and lease commissions to try to add to the roster of smaller office tenants at 924 W. 19th Place and to help fund 5 Rabbit’s construction, McLean said.
The brewery is leasing 5,000 square feet on the ground floor for a brewpub and 7,000 square feet in the basement for the brewing operations, he said.
A pioneer in Latin-themed brewing, 5 Rabbit is known for incorporating ingredients such as chili peppers, herbs and spices into its beers.
The company has been dormant in recent years after closing its brewing facility in Bedford Park, Illinois, while planning the Pilsen space.
“Their brand is still very strong and they’re a big part of the community,” McLean said. “We’re super excited to have them on the block and serving food. It’s exciting because this will bring in more members of the community who aren’t office employees here. We intended that all along, to bring the community into the property.”
For the record
Avison Young brokers Dino Sepsis and Danny Nikitas represent Condor Partners in leasing.