John Murphy Development is looking for a loan for the Skokie project
One of Chicago’s most active development companies has acquired a 153-unit luxury apartment project in Skokie and is now seeking a construction loan amid the economic turmoil the pandemic has created.
John Murphy, head of the Murphy Development Group, is seeking a $ 45 million loan to build the 12-story complex at 8000 N. Lincoln Ave., according to Crain’s. The company took over the $ 73 million project from developer Norm Hassinger and Greenspire Capital, who had worked with Skokie officials on the development, and started work in May 2018, the outlet reported.
The project, called the Lucien Lagrange, is said to have 14,300 square feet of retail space and is expected to be completed in December 2019, according to its website. The village agreed to pay $ 5 million in increased tax financing.
While the foundation work was done and the garage was nearing completion, the construction loan was never obtained. With the coronavirus having gripped the US economy, credit markets have tightened and thousands of commercial real estate borrowers are now seeking help with their monthly mortgage payments. Loan managers work with borrowers on existing loans and examine the impact Covid-19 has had on their ability to pay, recent report shows TRD Talks Live Panel which covered the current commercial mortgage brokerage industry.
Murphy told Crain’s that lenders are cautious, asking for “a few months to breathe” to allow the crisis to ease, but he is optimistic.
Murphy is also in the middle of a Billion dollar redevelopment the long-vacant Cook County Hospital in Chicago, where it will bring hotels, offices and retail. Last year Murphy also plans deposited for an office building at Fulton Market that would include 96,000 square feet of office space and 10,000 square feet of retail space on the ground floor. [Crain’s] – Alexi Friedman