Berkadia announced the recent $48.5 million financing for Bush Temple at 800-812 N. Clark Street, a multi-phase, 230-unit apartment project with ground floor retail in Chicago’s Near North neighborhood. Director Michael Slovitt and senior managing director Chris Blechschmidt of the Chicago office secured the loan through one of Berkadia’s correspondent insurance companies on behalf of Delaware-based Bush Temple, LLC, an affiliate of Chicago-based Cedar Street Companies and their new equity partner. The deal closed July 3.
“The long-term, fixed-rate nature of the capital was critical to the success of the transaction,” Slovitt said. “It took interest rate risk off the table—which has been a recent hot-button issue for many sponsors and equity investors. This was a scarce product, as not many in the marketplace offer 20-year construction-to-perm debt.”
The 20-year loan was uniquely structured to finance the recapitalization of a 101-unit mixed-use project in lease up, the construction of a new 129-unit, 15-story tower and the long-term permanent financing upon completion of both phases. The fixed-rate financing eliminated interest rate risk and has a predetermined earnout structure to up-size the loan and recoup equity without selling or refinancing.
“Chris and Michael’s personal relationships with their correspondent insurance company network was critical—without it, we would not have closed,” said Will Murphy, managing partner at Cedar Street Companies.