Midwest Orthopedics at Rush | Chicago, Illinois

Project
This 117,000 square foot medical office building located in Chicago is the corporate headquarters and flagship location for Midwest Orthopedics Group. Located on the Rush Campus in downtown Chicago, this state-of-the-art facility is one of the largest, most comprehensive medical office buildings ever constructed. The building design paid special attention to environmental efficiency and responsiveness. An extensive green roof restores 50% of the site with adaptive vegetation, decreases 25% of storm water runoff, and reduces the “heat island” effect.

​Challenges
As a build-to-suit space for an owner-occupant, mitigating interest rate risk was the primary goal of the client. Physically, the collateral was air-rights under a condominium structure, subject further to an unsubordinated ground lease – once constructed, only a portion of the building would serve as collateral for the loan. Finally, the financing request was made during the worst global liquidity crisis since the Great Depression.

Result
Michael Sieman, during his tenure with Northmarq, conducted an extensive search to find an investor willing to underwrite a complex collateral structure under terms that could satisfy the loan term goals. Having redundancy in capital relationships was imperative in successfully structuring a 2-year forward firm commitment with interest rate protection created via a derivative.

Reference Articles:  http://208.112.24.10/pdf/Midwest_Orthopaedics_Facility_Construction.pdf