Sterling Bay Secures $79 Million Loan in Chicago
The developer refinanced its Fulton Market office building to retire maturing construction debt.
Updated on Oct. 23, 2026 in Commercial
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Sterling Bay has secured a $79 million loan for its 11-story office building at 345 North Morgan Street in Chicago. The new financing retires a maturing $70 million construction loan from Bank OZK.
Why it matters
The deal ensures continued financial backing for the 197,000-square-foot Fulton Market property as the office market adapts to changing credit conditions. It highlights the stabilization of high-occupancy office assets in the area, which now reports 94 percent leasing levels.
The new $79 million loan replaces a $70 million construction debt for the 345 North Morgan Street office building. With 94 percent occupancy, the property has $178 million in future contractual rent revenue through March 2039.
The players
Sterling Bay
A major Chicago-based commercial real estate developer and property manager.
DekaBank
A German institutional bank that provides commercial real estate financing and investment services.
Bank OZK
A financial institution that provides construction and commercial real estate lending services.
Havi Group
A global supply chain and logistics company that acts as a major commercial tenant.
The details
Sterling Bay completed the refinancing transaction through an entity tied to DekaBank to pay off its previous construction debt held by Bank OZK. The 2022-completed building serves as a key office asset in Chicago’s Fulton Market. Nearly half of the 197,000-square-foot space is occupied by Havi Group, which maintains a lease extending to 2039, providing long-term revenue security for the property.
Timeline
The 345 North Morgan Street building was completed in 2022.
Sterling Bay attempted to sell the building in January 2026.
A separate refinancing for 360 North Green Street was secured in July 2026.
The $79 million refinancing deal was reported on October 23, 2026.
The lease for Havi Group at the building runs through March 2039.
Money Landscape
The move follows a pattern set by the 2026 refinancing of 360 North Green Street, reflecting a continued trend of debt restructuring for office assets in the Fulton Market neighborhood. This shift highlights how developers are managing maturing construction debt to maintain stability.
While this transaction is institutional, it signals stability for large-scale commercial tenancies in Chicago's Fulton Market. Business owners leasing office space in the area should monitor how debt restructuring impacts long-term lease terms and property management.
The takeaway
The successful refinancing highlights the importance of high occupancy rates in securing capital for maturing commercial projects. Investors and stakeholders should track how long-term lease commitments, such as those through 2039, influence the ability of property owners to secure new financing.
Further reading
For broader trends in local office assets, see Commercial.
Source note: This article includes information reported by The Real Deal New York.
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