HFF has provided $27.5 million financing for Valley Lo Tower II, a 112-unit, mid-rise apartment community in Glenview, Ill., a northern suburb of Chicago.
Working on behalf of The Marquette Cos. and LEM Capital, HFF secured the five-year, fixed-rate loan through Allstate Investments. Loan proceeds were utilized to purchase and significantly enhance the boutique property.
Located at 1910 Chestnut Ave., the 1985-built Valley Lo Tower II offers a list of amenities such as a 2,300-square-foot community room, solarium, heated outdoor swimming pool, tennis court, as well as a heated garage. The family-friendly apartments average nearly 1,800 square feet in size, and offer features and finishes similar to single-family homes.
The challenges that arose along the way to completion included an elevated per-unit purchase price for an older vintage product, Matthew Schoenfeldt told MHN. Tight in-place debt yield just below seven percent also made delivering financing a challenge.
The hurdles were surmounted by “delivering proof of [the] compelling, boutique nature of the asset,” Schoenfeldt added. “Larger units, underground parking, unparalleled public schools; these facts convinced lenders, attuned to the North Shore’s demanding tenants, that Valley Lo II was exceptional. HFF has represented Marquette Companies as a borrower for more than a decade. This fact has armed us with intimate knowledge of their strategy, skill sets and track record. Clearly articulating these attributes to lenders has proven the key to delivering for this valued client time and again.”
A Diamond in the Rough
Valley LO Tower II offers a mix of 29 one-bedroom, 30 two-bedroom, and 53 three-bedroom floor plans. All apartments include in-unit washers and dryers, large walk-in closets and private balconies.
“This property represents a unique opportunity to reposition a marquee asset in one of Chicago’s North Shore suburbs,” Schoenfeldt said. “To longtime residents of the submarket, Marquette and LEM’s revitalization of Valley Lo is an absolute no-brainer. Even if a land parcel could be secured in a similarly compelling location, the cost to construct a building of this quality inclusive of underground parking would be prohibitive. The partnership truly has a diamond in the rough.”
The property is set in a quiet residential section of upscale Glenview with access to high-ranked public schools and is within steps of Glen Town Center.
Image courtesy of HFF