CHICAGO, ILLINOIS (November 5, 2019) – Brett Hood of NorthMarq’s Chicago office secured a $15,645,000 loan to recapitalize a recently renovated, 91-unit Art Deco multifamily building located in Chicago’s renowned Lincoln Park neighborhood.
The property had recently stabilized after witnessing a complete gut renovation totaling approximately $40,000/unit that included overhauling all unit interiors, common areas, electrical and plumbing. NorthMarq arranged the 7-year fixed rate loan structured with two years Interest Only through its relationship with Freddie Mac.
The property resides within walking distance to CTA train commuter lines, restaurants, shopping, and Lake Michigan. Unit amenities include fully equipped kitchens with new cabinetry, stainless steel appliances, granite countertops, subway tile backsplashes, hardwood flooring, in-unit washer/dryer and large closets.
The subject transaction represents the sponsor’s first agency execution. The loan was signed up just prior to agency spread increases tied with volume caps in early fall. “The nature of Freddie Mac’s execution allowed the spread to be held throughout the underwriting process and ultimately enabled the borrower to benefit from the dropping 7-year UST yield index upon final rate lock,” said Hood.