TODAY’S DEALS: Stalled Chicago Tower Restarts with U.S. Bank Loan
Related starts a Chicago tower thanks to financing from U.S. Bank; Stoneleigh Companies and Arris Investments land construction financing for a 298-unit asset in Denver; and NorthMarq arranges a $20 million loan for a market-rate Las Vegas community.
Chicago, Ill.—U.S. Bank and Related Midwest have closed on a $115 million loan that will finance construction of 111 W. Wacker Drive, a 504-unit apartment community in downtown Chicago. The asset was originally planned to be the fifth-tallest building in the Second City, but it only reached 25 stories before the recession halted construction in 2008. The project has been sitting unfinished since then.
Related acquired the building in July 2011 and announced plans to transform the stunted tower into a 60-story luxury rental. Demolition is currently underway and vertical construction is expected to start in early 2013 with completion by the spring of 2014.
“Related Midwest is pleased to partner with U.S. Bank on the development of 111 West Wacker Drive,” says Curt Bailey, president of Related Midwest. “Chicago’s rental market is strong and demonstrating healthy rent growth. Not only will we be bringing greatly desired best-in-class luxury rental apartments to downtown Chicago, but together we are creating hundreds of jobs and investing in the future of our great city.”
Related Midwest has recently completed several developments in Chicago, including 340 On the Park, 840 North Lake Shore Drive, Park Tower, The Belvedere and The Pearson, and is currently developing 500 North Lake Shore Drive.
Stoneleigh, Arris close construction loan for 298-unit Denver project
Denver—Stoneleigh Companies LLC and Arris Investments LLC have acquired 13.8 acres of vacant land and closed a construction loan for a 298-unit apartment project called M2 Apartments in Denver. The project is the ninth multifamily project acquired/developed by Stoneleigh in the past three years. U.S. Bank provided the construction loan.
“Our M2 concept will provide the highest quality of suburban Denver living in a market that has seen no new construction since we built the Monterey Apartments in 2001,” says Rick Cavenaugh, president of Stoneleigh. “We were fortunate enough to acquire this in-fill location with tremendous retail and lifestyle amenities. We’ve been in the development stage for 18 months and will begin construction on October 1.”
NorthMarq arranges $20M loan from life company to meet Las Vegas property’s holding period
San Diego–Gardiner Champlin, Marty Meagher, and Eric Flyckt, senior vice presidents and managing directors of NorthMarq’s San Diego Regional office, Paul Fearey, vice president of NorthMarq’s Washington, D.C. Regional office, and Marcy Olson and Thomas Powell of NorthMarq’s Las Vegas Regional office, cooperated to arrange first mortgage refinancing of $20 million for Avanti Apartments, a 414-unit market rate multifamily community located in Las Vegas, Nev.
Financing was based on a five-year term and a 30-year amortization schedule. NorthMarq arranged this financing for the borrower, Fairfield Clairmont I LLC, through its relationship with a life insurance company.
“The five-year fixed rate execution met borrower projected holding period needs. The agencies were competitive, but the borrower opted for an existing life company relationship for ease of execution,” says Meagher. “This low-leveraged takeout of a construction loan was a very smooth execution for the borrower with an existing life company relationship,” adds Meagher.
