Director Matthew Schoenfeldt and senior managing director Mike Kavanau, both with the Chicago office of Holliday Fenoglio Fowler LP, secured the refinancing for the 344-unit Lincoln at Ovaltine Court. The term of the loan is five years. The financing has a 5.35% fixed-rate with Freddie Mac.
The joint venture decided to refinance because "the existing loan was at a higher rate and was open to be prepaid," Schoenfeldt says. The previous financing was around 6%, he says. The loan to value is approximately 50%, he tells GlobeSt.com.
The 344-unit apartment community was developed in 2001. The former Ovaltine headquarters and factory, which had been occupied for more than 75 years, was redeveloped as part of the Lincoln at Ovaltine Court development. The redeveloped space has 121-loft style units. An additional 223 units and six commercial units are in garden-style buildings constructed on the 14-acre site. The one and two-bedroom residential units range in size from 673 sf to 1,318 sf. Rental rates range from $1,000 to $1,700, Schoenfeldt tells GlobeSt.com.
Amenities include high ceilings of between nine feet to 16 feet, washers and dryers, balconies or patios, a fitness center, a business center, a clubroom and an outdoor swimming pool. Additionally, many of the units have fireplaces and direct access garages. "It really does offer an apartment product that you do not find anywhere in the western suburbs," Schoenfeldt says. The apartments are 93% rented. The property is near Interstate 88, Interstate 294 and Interstate 290, and is also near the Illinois Prairie Path bicycle trail, which "is just a tremendous amenity for people who are active," he says.
Lincoln Property Co. had put the property up for sale last summer but is no longer selling the property, Schoenfeldt confirmed. "It was more of a test of the waters," he says. "They are making a great return (and) it is very well-occupied," he added, although he declined to give the rate of return. The project cost to develop Lincoln at Ovaltine Court was reportedly $44 million.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
