LG Group has been featured in the cover story of the latest edition of IL REJournal, which explores how Chicago commercial real estate developers are recalibrating their strategies and reimagining the capital stack in a market defined by high interest rates, cautious banks and shifting underwriting standards.
With renderings of LG Group’s new River North headquarters included on both the cover and within the article, the deal for the project was singled out as an example of how capital structure innovation can make deals pencil even in the midst of market uncertainty.
As Juile Sommese, Illinois managing director of PACE Equity, explained, “[Our company] funded 11% of the capital stack for the development of LG Group’s corporate headquarters, a 16,000 square foot building in downtown Chicago.”
She continued, “LG Group is a Chicago-based development and full-service construction company that fully occupies the building. PACE Equity funding replaced owner equity with low-cost, fixed rate financing.”
To read the full article in IL REJournal, click here.