CHICAGO, ILLINOIS (June 15, 2020) – Senior Vice President of NorthMarq’s Chicago-based regional office Brett Hood secured $15,958,000 in combined agency debt recapitalizing two multifamily properties located in the popular Old Town and Logan Square neighborhoods in Chicago, Illinois.
Freddie Mac structured the financing as two separate loans of $8,548,000 and $7,410,000. Both featured a sub-3.00 percent fixed rate coupon for 7 years with Interest Only payments throughout. The collateral encompasses 94 units in aggregate with in-place average rents qualifying as “mission-driven” under the agency’s affordability directive.
“The nature of Freddie Mac’s program enabled an efficient closing process with certainty of execution in a volatile Covid-19 environment,” said Hood. “The sponsor elected to index lock early in the process, completely eliminating interest rate risk since Freddie holds their spreads throughout the term of the application.”
2420 N Kedzie was constructed in the 1920s and recently underwent a complete gut renovation in 2016. The property features 53 studio and one-bedroom units with condominium quality finishes. The property sits on Kedzie Blvd a few blocks south of the Milwaukee Ave retail corridor and Logan Square CTA blue line stop.
1220 N LaSalle was constructed in the 1960s and features 41 one bedroom and two bedroom units. The property includes onsite covered parking and loft floor plans in several units. The property is currently undergoing significant exterior renovations and several of the units have received kitchen and bathroom upgrades. The property is located a short walk from dining and entertainment options along Wells Street and North Avenue.