Melrose Ascension Capital and QIP land financing for 633 S. LaSalle

Melrose Ascension Capital and Q Investment Partners have the closing of construction financing for 633 S. LaSalle, a residential development in South Loop. Already under construction, QIP and MAC joined forces to reposition and revamp the legacy scheme, previously acquired from PMG and The Collective. 

The project was made possible following a US$63.7 million construction loan, syndicated between Glacier Global Partners, BH3 Management, & Petros PACE Finance, and equity provided by private investors and Bank Julius Baer.

“We’re excited to announce the full capitalization and development of this project, having broken ground in 2023,” said Nick Melrose, Founder & CEO of Melrose Ascension Capital. “Despite the current market challenges and construction pricing environment, our dedicated project teams have brought this to fruition, which is a testament to our partnership with QIP, and our entire valued project team, including Clark Construction, FitzGerald Associates, and Common Living. We also have great coactive lending partners in Glacier, BH3, and Petros that were instrumental in bringing this project to fruition.”

Designed by FitzGerald, the residential building will rise 17 stories, comprising 358 total beds in a mix of studios, convertibles, two-beds, three-beds, and four-bedroom apartments. Featuring a diverse mix of fully furnished bedrooms and living spaces in some units, alongside traditional, unfurnished apartments, the project appeals to a wide range of prospective tenants with cost-effective, Class A housing.

With rents starting at $1,650, residents will have access to expansive rooftop amenities (including a fitness center, lounge, game room, and private event space), an outdoor pool and terrace, and ground floor co-working space for residents. 

Slated for completion in Q4 2024, this most recent undertaking underscores the start of a programmatic collaboration between QIP and MAC to deliver high-quality investment opportunities amidst challenging market conditions, but also QIP’s commitment to strengthening its expansion and development capabilities in the US. Clark Construction is serving as the general contractor for the construction.

“The US real estate market is a very important piece of QIP’s real estate growth strategy,” commented Peter Young, CEO of QIP. “As QIP develops its multifamily housing investment development & operational capability and establishes its position as a leading player in the private equity real estate investment sector, this partnership with MAC offers an opportunity to further build out our global residential living sector platform across the US, the UK, and Japan.”