Tree Street Group, a Chicago-based, fully integrated real estate development firm, together with development partners Magellan Development Group and Mark Goodman & Associates, today announced the sponsorship has closed on construction financing with Bank OZK, who provided a senior loan, and junior capital from Beach Point Capital and Circle Property Partners on 410 N. Elizabeth, a 33-story high-rise in Chicago’s Fulton Market neighborhood. It will be Chicago’s first all-electric, geothermal multifamily high-rise and represents the first phase of a two-tower, mixed-use development.

410 N. Elizabeth will include 383 units, with 77 designated as affordable. Residences are comprised of 38 studios, 87 one-bed, 256 two-bed and two three-bed apartments. Upon completion of both phases, the development will bring more than 724 total units, with 146 earmarked as affordable, to the thriving Fulton Market neighborhood.

“Closing on financing for 410 N. Elizabeth is a significant milestone for our team, one that dares to achieve what no one else has attempted – Chicago’s first geothermal multifamily high-rise,” said Ted Weldon, principal of Tree Street Group (TSG). “Our ability to move forward on this project underscores the faith of the many parties involved that Chicago is a national leader in sustainable development and a premier market for institutional investment.”

According to the Chicago Apartment Association, Chicago is coming off a 10-year low of new apartment deliveries, and 410 N. Elizabeth will be one of the few tower cranes to rise this year for construction in any sector. TSG Principal Rodrigo d’Escoto noted that in addition to a tight capital markets landscape, other variables make multifamily development difficult to pencil out.

“Labor and material costs, elevated interest rates – it all contributes to lean profit margins for developers, and without being very creative, these projects just don’t make sense financially,” said d’Escoto. “Our firm’s approach benefits from the integration of design, construction and project management – all of it – under one roof. We call it construction-informed design, and that approach is saving us as much as 15% in costs compared with the traditional design-bid-build projects. That is a significant reason why we were able to secure the necessary capital in an otherwise challenging market.”

The geothermal design and associated energy savings of 410 N. Elizabeth unlocked additional capital for the building, which was provided by Infinite Energy Partners, who will own and operate the pioneering system. This system, along with other key design features, will reduce energy usage by an estimated 60%, enabling the building to be Chicago’s first fully electric multifamily high-rise. As a result of lower energy use, the building is projected to reduce emissions by 30% and energy cost-savings by more than 25%. Contributing significantly to the project’s unprecedented energy efficiencies is a triple-glazed window wall system by Reflection Window + Wall that will also help reduce noise pollution and enhance resident comfort.

“Bank OZK is pleased to be the senior lender for this exceptional development, and this financing demonstrates our confidence in the sponsors’ ability to execute on their unique vision,” said Ako Dickson, managing director of originations at Bank OZK.

J.R. Berger, president of Magellan Development added, “Our firm has a long-standing commitment to Chicago, and we’re very excited to be partnering with TSG on this project. 410 N. Elizabeth will not only set a new standard for green building but also signal our continued belief in the positive long-term outlook for Chicago.”

TSG Principal Ed Kruschka expressed his gratitude to city officials, particularly 27^th Ward Alderman Walter “Red” Burnett. “410 would not be possible without the support of the city and Alderman Burnett, who is a fantastic steward of Fulton Market and a driving force in its ongoing growth and prosperity,” he said.

Archeo Design Studio is serving as the architect of record for the development. Each tower will feature a gridded facade made up of metal paneling and glazing with ground-floor retail spaces located adjacent to a privately maintained but publicly accessible park, which features green space and a 30-foot-wide pedestrian street running across the southern end of the site. The pedestrian way will connect Elizabeth Street with Ogden Avenue, providing a gateway to the planned Fulton Market Metra Station, which will serve commuters, residents and visitors to the dynamic neighborhood.

Clark Construction Group is serving as the project’s general contractor, bringing 35 years of experience in Chicago delivering complex urban projects, in partnership with Integra-X-Builders, who will be providing construction management and unparalleled geothermal expertise.

About Tree Street Group:

Tree Street Group (TSG) weaves together expertise across all aspects of the industry. By fully integrating financing, design and construction, the firm delivers projects of the highest quality efficiently and effectively through construction-informed design, an approach conceived by founding Principals Rodrigo d’Escoto, Theodore Weldon and Ed Kruschka. The firm’s current pipeline includes approximately $1 billion in next generation developments emphasizing energy efficiency and sustainability. For more information, visit treestreetgroup.com.

About Magellan Development:

Founded in 1996, Magellan Development Group is a national leader in urban mixed-use real estate – investing in, developing and managing premier properties across the United States. Having delivered over $8 billion in total development value across residential, hotel, office and retail projects, Magellan prides itself on being a builder of neighborhoods that transcend traditional single-asset development. Its portfolio includes some of the most recognized addresses in the country, from the landmark St. Regis Chicago, Thompson Austin and W Nashville to the master-planned districts of Lakeshore East in Chicago and Union Square in Somerville, Mass. For more information, visit www.magellandevelopment.com.

About Bank OZK:

Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides financing on commercial real estate projects throughout the nation. RESG is considered a preeminent, market-leading construction lender focused on senior secured financing for a variety of property types, including mixed use, multifamily housing, condominiums, office, hospitality, life sciences, industrial, cold storage, self-storage and retail. For the five years ended March 31, 2026, RESG originated approximately $39.13 billion in new loans. For more information, visit ozk.com.

About Beach Point Capital:

Beach Point Capital is a global alternative investment manager focused on opportunities across the credit spectrum. The firm’s integrated platform spans Performing Credit, Opportunistic Credit, Structured Credit & Asset-Based Finance, and Private Credit, investing in real estate credit, hybrid solutions, high yield bonds, senior loans, CLO origination, securitized credit, direct lending and capital solutions. Beach Point’s Real Estate strategy targets lending investments in all property types, throughout capital structures and across the risk spectrum. Founded in 2009, Beach Point is employee-owned and manages over $20 billion in assets on behalf of a predominantly institutional client base, with offices in Los Angeles, New York, London and Dublin. For more information, visit https://beachpoint.capital