CHICAGO – October 9, 2018 – Berkadia’s Hotels & Hospitality group announced today the $56 million financing of the Water Street District, a mixed-use development along the Naperville Riverwalk in Naperville, Illinois. The Hotels & Hospitality group secured the refinancing loan on behalf of Marquette Companies through Voya Financial. The transaction closed on August 30.
The competitive bridge loan will provide short-term financing as the project exits the construction phase and matures into the market.
“Marquette created an exceptional destination with the Water Street District,” said Berkadia Director Matthew Dower. “Voya recognized this unique opportunity to diversify with a mixed-use space in a strong performing market. This is a strong partnership between Marquette, a leader in development and management, and Voya, a life company leader in mortgage financing.”
“Lending in commercial real estate is increasingly competitive, with a spectrum of players—from life companies to private equity to banks—seeking opportunities,” continued Dower. “The market for assets like multi-family or industrial space is particularly crowded, so we’re seeing more firms, especially insurance companies like Voya, look to the bridge space for competitive returns on a shorter timeline and find success.”
This deal comes on the heels of several high profile sales and financing deals, including the $81 million sale of the Hyatt Centric Arlington, by Berkadia’s Hotels and Hospitality group, the fastest growing full-service hospitality commercial real estate platform in the country.
“We were thrilled to work with Marquette on securing refinancing for the Water District,” said Andy Coleman, senior managing director Berkadia. “This is an incredibly unique project: innovative new construction that was the result of a vision for downtown Naperville hatched more than ten years ago. Anchored by Hotel Indigo—the only hotel in downtown Naperville—Water Street is a thriving commercial and hospitality hub for the city. It will continue to deliver value for Voya, and for the city of Naperville, long into the future.”
The Water Street District, a finalist for the ULI Vision Award, totals more than 175,000 square feet, featuring: 158-room Hotel Indigo, IHG’s international boutique hotel brand; 40,000 square feet of high-end retail shops and restaurants on the Riverwalk; 14,800 square feet of Class A office space and numerous amenities, including a riverfront boardwalk, European style plaza, a Boilini designed fountain, and numerous artistic murals; and a 520-car parking facility, complete with electric car charging stations.
Berkadia’s Hotels & Hospitality group combines best-in-industry innovation, knowledge and experience with the most comprehensive suite of products and services, backed by relentless customer service and support to empower clients to capitalize on the right opportunities at the greatest value. The group serves clients across the country, offering a full set of advisory, investment sales, underwriting and loan origination services and products including Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services. In 2017, the team completed more than 30 transactions from Washington, D.C. to Palo Alto, California.