CHICAGO—HFF has been closely involved with the Fifield Companies' K2 project in the West Loop from the beginning, and has now continued that connection by arranging $118 million in financing for its recent acquisition by the Georgetown Co. HFF secured a 10-year, fixed-rate loan through Freddie Mac's CME program. The company will service the loans through its Freddie Mac Program Plus® Seller/Servicer program.
Georgetown completed the $215 million acquisition of the 34-story, 496-unit apartment tower at 365 N. Halsted St. last month. Adam Flatto, chief executive officer of Georgetown, told GlobeSt.com that the New York-based firm considers the property, completed in 2013, “a long-term investment; we're thinking in terms of decades.”
HFF originally arranged the construction financing for K2 on behalf of Fifield. The project has benefitted enormously from the tremendous demand by younger workers for class A rental apartments near the downtown. K2 was a hit immediately on opening, securing 125 leases in the first couple of months. Tenants now occupy 96% of the units.
“The West Loop location has outperformed any of our expectations,” says Danny Kaufman, the HFF managing director who, along with senior managing director Mike Kavanau and managing director Steve Skok, led the HFF debt placement team on the effort. “The Georgetown team brings world class real estate experience and will certainly improve this institutional quality project.”
In the short term Flatto does not anticipate making many changes. However, Georgetown does want to give a few tweaks to the public spaces and existing amenities. He called K2's dog park, for example, “a tremendous asset for the residents,” but still wants to upgrade it. “We would like to see it become the best facility of its kind in Chicago.”
Fifield equipped the tower with a host of amenities. K2 was recently granted a LEED Silver certification, for example, and the property also features a 10,000-square-foot outdoor deck and pool area including a 70-foot lap pool, hot tub, cabanas and fire pit. Other amenities include a fitness facility, yoga studio, basketball court, lounge, party room, theater room and business center. K2 also sits adjacent to Jewel-Osco's flagship grocery store in downtown Chicago and provides nearby access to the Ogilvie Transportation Center, the interstates and several CTA stations.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
