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Joint Venture Bets on Chicago Multifamily

23 Jul 2015, 1:54 pm

By Ioana Neamt, Associate Editor

Autumn Chase Apartments - 725 W Bode Circle, Hoffman Estates, IL

Autumn Chase Apartments – 725 W Bode Circle, Hoffman Estates, IL

Two out-of-state investors recently closed a major multifamily deal in the Windy City. Walker & Dunlop Inc. of Bethesda, Md., together with Phoenix, Az.-based TSB Capital Advisors closed a $50 million loan for the refinancing of Autumn Chase Apartments in Hoffman Estates, Ill.

A team led by Walker & Dunlop Managing Director Will Baker worked on behalf of Greenwood Capital Investment to secure a cash-out refinancing loan underwritten with a 10-year term, including nine and a half years of yield maintenance and a 30-year amortization schedule. According to a prepared statement, Fannie Mae agreed to lend up to 80 percent of the property value on a cash-out refinance.

“Based on Greenwood’s outstanding track record operating this asset for many years, they were able to access the equity they had accumulated in the project to grow their multifamily development platform,” said Baker. “Our outstanding relationship with Fannie Mae and TSB Capital Advisors enabled a seamless transaction.”

Located at 725 W. Bode Circle in Hoffman Estates, Autumn Chase Apartments incorporates 550 studio, one- and two-bedroom residential units and has an occupancy rate of 95 percent. The garden-style community offers residents amenities such as an outdoor swimming pool, tennis court, private picnic area, and parking garages with automatic doors. The Northwestern Chicago suburb of Hoffman Estates is the home of Sears Holding Co.’s headquarters and the Midwest headquarters for AT&T.

Image courtesy of Autumn Chase Apartments

East Garfield Park Finally Turns Affordable

17 Jul 2015, 3:11 pm

By Ioana Neamt, Associate Editor

Harvest Homes exterior

Harvest Homes exterior

A long-awaited affordable housing community is ready to break ground in Chicago’s East Garfield Park neighborhood.

Representatives of The NHP Foundation (NHPF) and of the People’s Community Development Association of Chicago Inc. (PCDAC), together with 28th Ward Ald. Jason Ervin and community members, will attend a groundbreaking ceremony for the neighborhood’s newest affordable housing community on July 18.

Harvest Homes Apartments, a joint venture between PCDAC and NHPF will develop a $12 million, 36-unit multifamily community for low- and moderate-income families in the East Garfield park community on Chicago’s West Side. The Harvest Homes development will be the neighborhood’s first affordable housing community in the last 15 years. The project is supported by the City of Chicago’s Department of Planning and Economic Development, J.P. Morgan Chase, the Chicago Community Loan Fund, NHPF, and the State of Illinois Department of Commerce and Economic Opportunity.

“We at The NHP Foundation are very proud to be a part of this significant new development in Chicago and appreciate the contribution of our public and private partners in the project,” said Richard Burns, CEO of NHPF. “NHPF has an expanding and valuable role to play in strengthening the affordable housing field in this country and Harvest Homes Apartments exemplifies our vision for the development and preservation of long-term affordable housing in high cost markets.”

The brand new community will feature 36 two-, three- and four-bedroom units reserved for families with annual household salaries ranging from $20,000 to $60,000. Construction will break ground this July, with completion scheduled for early 2017.

Image courtesy of The NHP Foundation

Wolf Point Tower Rises Even Higher

16 Jul 2015, 1:55 pm

By Ioana Neamt, Associate Editor

new Wolf Point South rendering

new Wolf Point South rendering

A fresh new look emerged for a Pelli Clarke Pelli-designed skyscraper in Chicago’s River North. The Chicago Architecture Blog recently got a hold of an updated rendering of Wolf Point South that depicts a visibly slimmer and taller structure than initially announced.

As Commercial Property Executive previously reported, Wolf Point’s south tower was designed as a 950-foot mixed-use tower that would become Chicago’s eighth tallest building. However, if the tower approaches the 1,000-foot mark, it could land a spot among the city’s top five tallest, according to Curbed Chicago.

Developed by Hines in partnership with the Magellan Development Group, Wolf Point is a billion-dollar masterplan consisting of three high-rise luxury towers to be erected on a historic River North site owned by the Kennedy Family. The massive development at 320-326 N. Orleans St. was designed by New Haven, Ct.-based Pelli Clarke Pelli, best-known for designing the Petronas Towers in Kuala Lumpur. The two million-square-foot project will include a mix of residential, office and hotel space. Additionally, the masterplan will incorporate extensive green and public spaces, including a 1,000-foot extension of the Chicago Riverwalk.

Construction broke ground on the first tower, Wolf Point West, in July 2014. The bKL Architecture-designed skyscraper will incorporate 509 luxury residential units on 48 stories and will pursue LEED Silver Certification.

Rendering courtesy of the Chicago Architecture Blog

On the Hunt for Retail in Chicago

14 Jul 2015, 6:20 pm

By Ioana Neamt, Associate Editor

Kendall Marketplace, Yorkville, IL

Kendall Marketplace, Yorkville, IL

A local investor is betting big on The Prairie State retail market.

Greenwood Global Inc. recently purchased the 590,000-square-foot Kendall Marketplace shopping center in Yorkville, Ill.  Having opened in 2008 at the height of the financial crisis, the property encountered difficulty in becoming the major power and lifestyle center it was initially intended to be.

Greenwood plans to breathe new life into the project by developing multiple outparcels and adding up to 155,000 square feet of retail space to the Class A center. The company also intends to develop 192 single-family homes and townhomes in an area adjacent to the shopping center.

“The property has a great backbone, and we look forward to working with CBRE, who has been selected to be the property manager and leasing agent, on accelerating development and leasing, and transforming this property into a premier shopping and eating experience, as we continue sourcing other value creation investment opportunities,” said Alex Berman of Greenwood Global Inc.

Located at 731-985 Erica Lane on 129 acres of land, the regional center provides access to Route 34 and the Cannonball Trail. The center is anchored by Dick’s Sporting Goods, PetSmart and Marshalls and shadow-anchored by Home Depot, Kohl’s and Super Target.

Alex Berman is best-known for closing a $1.43 billion sale of 47 retail assets to Blackstone and DDR Corp. in 2012 as CEO of Israel’s EPN Group. Berman also served as the head of General Growth Properties International until early 2009.

Image courtesy of JLL

Investors Get Industrious in the Windy City

10 Jul 2015, 5:44 pm

By Ioana Neamt, Associate Editor

O'Hare Business Center, Mount Prospect, IL

O’Hare Business Center, Mount Prospect, IL

A three-building industrial asset in suburban Chicago landed itself a new owner.

HFF managed to arrange both the sale and financing of the 127,642-square-foot O’Hare Business Center flex facility in Mount Prospect, Ill. A partnership between Principal Global Investors and Morgan Realty Partners sold the asset to a joint venture between Clear Height Properties and R2 for $6 million, free and clear of debt.

HFF represented both parties in the transaction while also securing $4.6 million in financing for the multi-tenant facility. According to a news release, HFF placed the five-year, fixed-rate loan with Oxford Bank & Trust.

The three one-story buildings that make up the O’Hare Business Center are situated on 7.45 acres at 401-411 W. Algonquin Road and 1840-1864 and 1870-1894 S. Elmhurst Road. The property is conveniently located in an area adjacent to Chicago’s O’Hare International Airport and provides easy access to I-90, I-190 and I-294.

The asset incorporates 28 units averaging 4,500 square feet, 16 drive-in doors, 14 interior dock platforms, and is currently 82 percent leased to 20 tenants. The property also provides 159 parking spaces.

The HFF investment sales team representing the seller was led by managing director Patrick Sullivan and real estate analyst Ryan Chambers, while the debt placement team representing the buyer was led by managing director Christopher Carroll, associate director Jason Bond and real estate analyst Nicole Schmidt.

Image courtesy of HFF

One Response to Chicago Archive

  1. Joselyn Overley

    Sep. 26, 2011 at 12:58 pm

    I just think it’s too hard for small businesses to try to purchase a property, renting or leasing is their only real option

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