Interforum Holdings Refinances Chicagoland BTR Property
The single-family rental property is part of a 650-acre master-planned development.
Interforum Holdings has obtained a refinancing package for Arden Townhomes, a 60-unit single-family rental community in Warrenville, Ill. An entity managed by Argentic Investment Management provided a $20 million, floating-rate senior loan while Pearlmark issued $5 million in mezzanine capital. JLL arranged the deal.
Previous debt included a $21.5 million construction loan originated by Arbor Realty Trust in 2022, according to Yardi Matrix data. The community debuted this year.
Arden Townhomes is an extension of Interforum Holdings’ 364-unit community of the same name. The developer completed Arden in 2021, having financed its construction with a $59.9 million loan from CIBC Bank USA, the same data source shows.
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The single-family rental property comprises three-level, three-bedroom units averaging 1,898 square feet. Townhomes feature 9-foot ceilings, kitchen islands, private balconies and two-car garages. Shared amenities between the community duo include a resident lounge, gym, yoga studio, sauna, library and kid’s club.
JLL Managing Director Trent Niederberger alongside Director Philip Galligan negotiated the financing on behalf of the borrower.
A mixed-use development decades in the making
Located at 28291-28417 Torch Parkway, Arden Townhomes is more than 30 miles southwest of downtown Chicago. The community is part of the 650-acre Cantera mixed-use development which resulted from a Tax Increment Financing more than three decades ago. LaSalle Partners, now JLL, was instrumental in the project.
Overtime, Cantera became Warrenville’s largest employment center with companies such as EN Engineering, Exelon Nuclear and Liberty Mutual Insurance operating in the neighborhood. Additionally, the master-planned development also includes multiple retail, dining and medical facilities, to name a few.
Despite supply glut, advertised Chicago BTR rents go up
As new construction prospects and acquisition opportunities for the single-family rental sector remain in short supply, completing and stabilizing existing BTR communities, as well as securing short-term financing, have become a focal point for developers, Sudha Reddy, founder & managing principal at Haven Realty Capital, previously told Multi-Housing News.
However, investments gained traction due to renting being cheaper than buying a home in almost half of the top Yardi Matrix metros—Chicago included—according to first-quarter data from Yardi Matrix. During the second quarter of 2024, investors acquired 16.8 percent of all homes sold in the U.S.
Year-to-date as of October, developers brought online more than 550 SFR units across Greater Chicago, more than the combined new supply added between 2019 and 2023, Yardi Matrix data shows. Yet, despite the surplus, BTR advertised rents maintained an upward trajectory, witnessing a 1.9 percent increase year-over-year through August, albeit substantially lower than the 9.1 percent growth registered in August 2023.
