Beech Street Closes On $44M Loan

CHICAGO—Beech Street Capital, LLC, has given a vote of confidence to the buyers of 2 East 8^th Street. The Maryland-based firm has closed a $43.9 million Fannie Mae structured adjustable rate mortgage for the acquisition of the student-housing tower. Marc Realty Residential LLC, Atlas Real Estate Partners and Angelo Gordon & Co. of New York City bought the 330-unit building earlier this year for $59 million. A story in Crain’s quoted Robert Bronstein, president of the Scion Group LLC, a Chicago-based student housing investor, who critiqued the joint venture’s plan to market the tower to companies as a summer housing option for interns or other employees, saying “they underestimate the marketing and turnover costs of what is essentially an extended-stay hotel.”

Yesterday, however, Beech Senior Vice President Mitch Sinberg said that “we believe in the borrower’s vision that there is a tremendous amount of benefit related to the property. The transaction shows our commitment to our clients, as well as the continued momentum in the student housing space.”