HFF has arranged $118 million in financing for K2, a 34-story, 496-unit, Class A residential tower in Chicago’s West Loop that was recently acquired by The Georgetown Co., a leading developer and owner of properties nationwide.
HFF worked on behalf of Georgetown to secure the 10-year, fixed-rate loan through Freddie Mac’s (Federal Home Loan Mortgage Corporation) CME Program. The securitized loans will be serviced by HFF through its Freddie Mac Program Plus® Seller/Servicer program.
K2 is located at 365 North Halsted Street in Chicago’s West Loop submarket immediately adjacent to Jewel-Osco’s flagship grocery store in downtown Chicago. The transit-oriented property also provides nearby access to the Ogilvie Transportation Center, Interstates 90/94, 290 and 55 and several CTA stations. Completed in 2013, the LEED Silver property features one-, two- and three-bedroom units averaging 779 square feet each. The property, which reflects the very best in Chicago with respect to amenities and design, 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 state-of-the-art fitness facility, yoga studio, basketball court, lounge, party room, theater room and business center/boardroom. The property is 96 percent leased. Georgetown intends to make various improvements to the property including upgrades to public spaces and improved amenities.
“The West Loop is one of Chicago’s fastest growing residential, entertainment and employment centers. The opportunity to participate in the growth and energy in the West Loop and Fulton Market districts attracted us to this property,” said Adam Flatto, CEO of The Georgetown Co. “HFF has been a valuable partner in this process and we’re very pleased with the work they have done on our behalf.”
The HFF debt placement team representing the borrower was led by managing director Danny Kaufman, senior managing director Mike Kavanau and managing director Steve Skok.
“HFF originally arranged the construction financing for K2 on behalf of Steve Fifield’s (of the Fifield Companies) development team. K2 is a wonderful project and the West Loop location has outperformed any of our expectations. We are thrilled to be a part of The Georgetown Company’s acquisition of K2. The Georgetown team brings world class real estate experience and will certainly improve this institutional quality project,” said Kaufman.
