News release

Financing closed for a $95M development project in Madison, WI

JLL Capital Markets arranged equity investment for the development of a multi-housing project in growing Midwest market

August 13, 2024

Grace Lewis

Hotels & Hospitality and Capital Markets PR
+1 903 520 3478

CHICAGO, Aug. 13, 2024 – JLL Capital Markets announced today, in concert with Vermilion Development and Quartz Lake Capital, the closing on debt and equity financing for a $95 million multi-family development located at 1617 Sherman Avenue, Madison, Wisconsin. JLL Capital Markets secured $33.3 million in joint venture equity for the project from Clarion Partners.

1617 Sherman will comprise six mid-rise buildings, offering a total of 309 multi-housing units with an average size of 793 square feet. The apartment units and townhomes will feature sophisticated design and premium finishes, ensuring a high-quality living experience.

Residents will also have access to an array of amenities, including a fitness center, bike storage, pet spa, coworking space, breakout rooms, community garden and a panoramic rooftop featuring grills, firepits and scenic lake views.

1617 Sherman is ideally situated at the junction of Downtown Madison and Maple Bluff, the city's most affluent neighborhood. The property offers easy access to Madison's Capitol Square, which boasts a diverse range of dining, entertainment, cultural and recreational amenities, as well as over 4.1 million square feet of office space. Additionally, the project sits on an 8-acre site adjacent to Lake Mendota and Tenney Park, widely regarded as downtown Madison's most scenic public park. This setting will provide residents with protected views of the downtown skyline and the lake. 

"In this difficult capital raising environment, Vermilion is delighted to partner with Quartz Lake Capital and Clarion Partners to finance this project and bring much needed new, high-quality housing to the Madison area," said Dave Cocagne, Vermilion’s CEO. "We appreciate the tenacity of JLL and Draper & Kramer to source the equity and debt capital, respectively, for the project. We’re also pleased to continue our long-standing relationship with CIBC, which will be providing construction financing for the project."

"1617 Sherman presents an ideal opportunity to further expand Clarion’s U.S. multifamily footprint and marks our Firm’s entry into the fast-growing Madison market," said Clarion Partners Managing Director and Acquisitions Officer Brad Davey. "We look forward to working with Vermilion to bring this beautiful new residential project to life."

The JLL Equity Placement team was led by Managing Director Chris Knight and Director Mike Brady. Bill Barry and Bill Stewart at Draper & Kramer led the debt placement.

"Madison is among the fastest-growing Midwest markets in terms of investment, income, employment and population," said Knight. "1617 Sherman is ideally positioned in this dynamic market, and we are excited to see the project flourish with the newly formed partnership."

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL’s newsroom


About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 110,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

About Vermilion Development

Vermilion Development is a Chicago-based real estate development and investment firm specializing in community-oriented mixed-use projects and public-private partnerships. Founded in 1992, Vermilion has completed or is currently completing developments totaling more than 500 million of gross investment value.

About Quartz Lake Capital

Quartz Lake Capital was formed in late 2019 by commercial real estate industry veteran K. Jay Weaver, previously a co-founder of Walton Street Capital.  Quartz Lake Capital focuses on value-add and opportunistic equity investments in existing and development assets in primary and liquid secondary markets in the U.S., with a predisposition to urban markets with live/work/play environments and infill suburban submarkets.

About Clarion Partners

Clarion Partners, an SEC registered investment adviser with FCA-authorized and FINRA member affiliates, has been a leading U.S. real estate investment manager for more than 40 years. Headquartered in New York, the firm has offices in major markets throughout the U.S. and Europe. With approximately $76.6 billion in total assets under management as of December 31, 2023, Clarion Partners offers a broad range of both debt and equity real estate strategies across the risk/return spectrum to its more than 500 domestic and international institutional investors. More information is available at www.clarionpartners.com.