Strategic Properties-Mirae Asset Daewoo JV Secures $102.5M Loan for Purchase of Chicago Multifamily Tower
Cityfront Place is a Class-A, 39-story 480-unit waterfront high rise located along the Chicago River.
CHICAGO—A joint venture of Lakewood, NJ-based Strategic Properties of North America and Mirae Asset Daewoo of South Korea has secured a $102.5-million loan for its acquisition of Cityfront Place here.
Cityfront Place is a Class-A, 39-story 480-unit waterfront high rise located along the Chicago River. Newmark Knight Frank is acting as advisors to the joint venture partners on the purchase and on the debt financing.
NKF executive managing director Henry Stimler and managing director Charles Han worked with the firm’s Matt Mense and Dan Sarsfield to deliver five-year Freddie Mac fixed-rate, full-term interest-only debt for $102.5 million at 3%.
SPNA, which also has offices in Skokie, IL, identified Cityfront Place as a prime candidate for its value-add program and approached NKF Capital Markets Strategies Group headed by President Anthony Orso to source both the debt and equity. The NKF Capital Markets Strategies Group also introduced SPNA to Mirae Asset Daewoo to form the joint venture.
NKF reports that the joint venture was drawn to the property’s prime location near healthcare and educational institutions with a strong workforce making it an excellent investment while mitigating any potential market disruption. The new owners are planning several property upgrades and has retained Lincoln Properties to manage the asset.
The property is near Northwestern Memorial Hospital, the University of Chicago Medicine and NBC Studios with a local workforce that consistently drives the asset’s high occupancy rate. Cityfront Place’s location in the Streeterville submarket of Downtown Chicago also adds to its desirability, near to eclectic bars, restaurants, retailers and entertainment venues, NKF adds.
“This transaction is an important victory for the new joint venture given the property’s planned high-quality improvements and its coveted location near potential employers, neighborhood amenities and landmarks,” Han says. “The timing for the purchase is incredibly fortunate for the new partnership as we were able to secure exceptionally favorable debt terms for this coveted multifamily investment.”
The law firm Saul Ewing Arnstein & Lehr represented the purchasers in the transaction. The firm’s real estate partners Barry Katz, Kate Gilligan and Roy Bernstein handled the sale that involved more than six months of work that included navigating what the law firm states were “numerous unprecedented challenges arising from the COVID-19 pandemic and the resulting economic conditions.”