Marx worked exclusively for Baderbräu to secure the comprehensive, multi-loan financing package for a property located in the South Loop area of Chicago. Baderbräu, a revitalized craft brewer that was originally established in the 1980s, has been subcontracting its production to an out-of-state brewery for the past three years. As the company’s sales increased rapidly, it ramped up external production to meet demand. However in 2015, with demand at an all-time high, the craft brewer decided to construct its own brewery, bringing production in-house, in a new South Loop location. Once completed and fully operational, the brewery will produce up to 50,000 bbls of beer per year.
The brewery, located at 2515 S. Wabash, in the former CF Connelly Building adjacent to I-55 and Mercy Hospital, will feature a 4,500-square-foot, state-of-the-art, industrial chic taproom, and will be open to the public seven days a week. Within walking distance from McCormick Place, Soldier Field and the Green Line el station, the brewery is a perfect game-day destination for craft beer lovers and Chicago sports fans.
Marx Financial organized a complex, multi-instrument financial transaction for Baderbräu, which included equipment funding, working capital, refinancing of existing debt, and infrastructural and renovation financing. Marx brought together both traditional lenders and a Chicago SBIF Grant, for repairing or rehabilitating facilities within specific TIF districts.
“It was a tough deal with five different lending sources involved,” said Rob Sama, president of Baderbräu. “So quite a few moving parts, and they got it done.”
Marx was able to secure a competitive interest rate, maximum leverage, a 16-year fixed term loan for infrastructure build out, equipment, and working capital for the newly leased South Loop Chicago location.
“Aside from organizing the financing, Marx also provided guidance in the complex and difficult permit and zoning processes. This was critical to the success of this deal,” Sama said.
Construction work commenced on October 16th, with an opening date scheduled for Q1 2016.