CBRE Lists Two Luxury Communities Totaling 1,198 Units in Chicago
- Aug 18, 2011
Chicago—CBRE’s Capital Markets Multi-Housing Group is representing Chicago-based Fifield Companies and its joint venture partner, Pacific Life Insurance Co., in the sale of two Class A luxury apartment communities that total 1,198 units. Both properties, Echelon and Alta at K Station, are located in Chicago’s West Loop. The complexes are available for purchase together or separately.
“As a commercial developer, it’s our business model to build, hold for a short time and then sell when the timing is right,” says Steven Fifield, president and founder of Fifield Companies. “The apartment market is very strong right now. It’s the hottest asset class around and these two buildings are high-performing rentals that offer an investor a great opportunity to own a large market share of the West Loop.”
John Jaeger and Dan Cohen, senior vice presidents at CB Richard Ellis’ Multi-Housing Group, are marketing theproperty on behalf of the sellers. They believe the properties will appeal to an investor looking for an irreplaceable core-quality multi-housing investment in a desirable Chicago sub-market.
Echelon at K Station is located at 353 N. Desplaines St. It was completed in 2008. Its 350 units are currently 95 percent leased. Rents range from $1565 to $2,845 per month. Amenities include a spa, fitness center, outdoor deck with a swimming pool, game room, home office, business center, 24-hour maintenance and door staff, and a party suite.
Alta at K Station is comprised of two towers: the West Tower is 37 stories and has 420 units; the East Tower is 41 stories and has 428 units. Both towers opened in June 2010 and contain a mix of studio, one- and two-bedroom units. Amenities include a 48,000-square foot sports and exercise deck, a resident lounge, party suite and outdoor private lounge, business center, 22-seat theater, a fitness center with men’s and women’s locker room, and an outdoor terrace with a pool, spa, private cabanas, grill and gas fire pit.
NorthMarq arranges $15.1M mortgage for 156-unit community
Lacey, Wash.—Ron Peterson, senior vice president and managing director of NorthMarq Capital’s Seattle office, has arranged first mortgage financing of $15.1 million for Dakota Apartments, a 156-unit property located at 6205 Pacific Avenue SE in Lacey, Wash.
The financing was based on a 7-year term with a 30-year amortization schedule. It was arranged for the borrower by NorthMarq through its seller-servicer relationship with Freddie Mac.
Mortgage Equicap arranges $5M bridge loan at less than 1.0 DSCR
New York–Daniel Hilpert, managing director of Mortgage Equicap, announced the company has arranged a $5 million bridge loan for the renovation of a mixed-use property with 16 apartments and ground floor retail on the Upper West Side in New York.
Mortgage Equicap arranged a 12-month non-recourse bridge loan with an option to convert to a permanent loan upon stabilization. The loan is interest-only during the initial term with a rate of 425 basis points over Libor and a 4.75 percent floor. The lender was a regional lender.
The borrower was looking for a conventional, non-recourse acquisition loan to purchase a transitional property with insufficient cash flow to cover debt service. The borrower requested maximum leverage and the flexibility to undertake construction without time-consuming bank requisitions.
The lender agreed to provide non-recourse financing provided the borrower maintains a three-month static interest reserve during construction. The loan was structured as acquisition loan without construction holdback, allowing the borrower to defer equity and avoid drawing against a loan budget.
“Many lenders are forced to underwrite loans based on the property’s cash flow, leaving many borrowers with insufficient proceeds to execute their business plans,” says Hilpert. “We were able to find a lender sizing the loan to a going-in debt service coverage ratio below 1.0″.