TODAY’S DEALS: NorthMarq Arranges a $20M New Construction Loan in Chicago
NorthMarq’s Chicago regional office arranged construction loan financing of $20 million for Webster Square; and Lucent Capital completes an $11.84 million permanent loan for the recapitalization of a building.
Chicago—Sue Blumberg, senior vice president and managing director, and Rup Patel, assistant vice president of NorthMarq’s Chicago regional office, arranged construction loan financing of $20 million for Webster Square located at 558 West Webster in Chicago.
This asset is the redevelopment of a medical office building into 75 market-rate luxury apartments along with 16,000 sq. ft. of first-floor commercial space located on one of the best parcels of property in Lincoln Park. The asset is the adaptive re-use of the former Lincoln Park Hospital.
Financing was based on an interest-only three-year term with two one-year extensions, if needed. NorthMarq arranged the financing for the borrower, Sandz Development, through its relationship with a regional bank.
“The borrower fought long and hard to obtain support and approval for what should have been a no-brainer,” Blumberg says. “This whole site will benefit the neighborhood. This is the right group for the right development in the right location.”
Lucent Capital arranges an $11.84 million permanent loan for a recapitalization
Houston—Commercial real estate finance and investment advisory firm Lucent Capital has arranged $11.84 million in permanent financing for the recapitalization of Oak Forest Apartments, a 321-unit garden-style apartment complex in Houston owned by an entity affiliated with Beverly Hills-based investment group Archway Holdings Corp.
“The recapitalization provided sufficient proceeds to pay off the senior loan, pay off the seller-carried second trust deed, and fund the required cap ex reserve,” says Lucent Capital managing director Farzin Emrani.
The property was built in 1971 and is currently over 95 percent occupied. The 10-year permanent loan is non-recourse, 75 percent LTV, provides one year of interest only followed by 30-year amortization, and permits subordinate financing.
Archway Holdings Corp. and its related entities have been investors in multifamily, medical office, industrial and raw land asset classes in California, Texas and Arizona since 1974.