American Street Capital (“ASC”) has arranged $4.5 million in financing for a 908-unit, 57 acre multi-family community in Chicago, IL. The transaction closed in February, 2015.
ASC worked exclusively on behalf of their client to secure a long-term solution for one of the three largest apartment complexes in the Chicago market. Due to the vast size of the property and asset type, the existing lender was transitioning it’s focus and was not willing to renew the loan. The sponsors were adamant to secure a long-term solution to avoid any future risk of this unique sized property again falling out of favor with their lender. The combination of a long-term requirement, size of the property, and their operational transition that led to a significant vacancy factor for the past two years made it ineligible for most lenders in the submarket. ASC successfully secured an ARM structure with a 30-year term with a national correspondent commercial bank. The loan also met the sponsor’s critical need of a flexible pre-payment allowing for sizeable principal reduction and being assumable to allow for a low cost option of selling the property in the future.
The loan was co-originated by James R. Bogard, the Chief Credit Officer and Igor Zhizhin, the President, of ASC.
