The Pinnacle Condominium Tower | Chicago, Illinois

The Project
At a height of 535 feet, The Pinnacle is one of Chicago’s River North Neighborhood’s most luxurious residential condominium towers. Overlooking historic St. James Cathedral, The Pinnacle offers two, three and four-bedroom residences from 1,300 to 5,400 square feet, including eight penthouses. The building is located just west of Michigan Avenue, Chicago’s premier shopping and nightlife attraction. The Pinnacle’s lavishly appointed homes feature marble entries, marble master baths, whirlpool tubs, fireplaces, gourmet kitchens, floor-to-ceiling windows and expansive balconies. Each of the units features views that open up to the entire city with breathtaking views of the Loop skyline and the Lake.

Challenges
In addition to requiring sufficient presales to satisfy debt investor requirements, the Pinnacle, positioned at the top of the market, was too large for any one investor to capitalize.

The Result
Michael Sieman, during his tenure with Fremont Investment & Loan, underwrote the syndication of a non-recourse construction/sell-out financing package across multiple institutions, including an institutional insurance company and a retail/commercial bank. This structure minimized the liquidity risk to the capitalization. Today the Pinnacle is considered by many one of the finest residential condominium towers in Chicago.

Reference Articles:
Condopedia:  http://www.condopedia.com/wiki/Pinnacle