Wheaton, Ill.—Strategic Briarbrook L.L.C., a subsidiary of Strategic Properties of North America (SPNA), has obtained a $39.4 million Fannie Mae DUS loan for the acquisition of Briarbrook Apartment Homes in Wheaton, Ill., a western suburb of Chicago.
Briarbrook Apartment Homes consists of 342 one- and two- bedroom units on 19.5 acres. The property, which was originally developed in 1972, was extensively renovated in 2008. Amenities include a swimming pool, sundeck, tennis court, and granite-style countertops.
The loan was originated by Donny Rosenberg of Greystone on behalf of Strategic Briarbrook, with Shaya Ackerman of Meridian Capital in New York as correspondent on the transaction. The loan carries a 12-year term with 30-year amortization and five years of interest-only, which Rosenberg characterized as “uniquely attractive financing.”
Investor demand for Chicago apartment assets is still quite strong, as the cost of debt financing remains low and property fundamentals continue to improve, Marcus & Millichap reported recently in its Q2 2016 Chicago Multifamily Report.
“Trade volume is strong with deals closing across all size and price tranches, indicating a diverse spectrum of demand,” the report noted. “Much of the new construction will provide little competition for low- to middle-tier investors, allowing owners in this tranche to aggressively push rents as the divide between Class A and Class B/C properties widens.”
Responding to higher demand and higher rents, developers have kicked into high gear when it comes to Chicago-area apartment development. About 8,800 units will be completed in 2016 as multifamily construction reaches a post-2000 high, reported Marcus & Millichap. Of this year’s deliveries, 5,440 rentals will be in the city, while 3,360 apartments are for the suburbs. Last year, builders delivered more than 5,800 units.