Lodge Financial successfully secured long term financing on a 64-unit condo deconversion with 64 different sellers. The $12,500,000 purchase price was supported by a loan of $8,225,000 with 65 percent of stabilized value. The borrowers inherited the building at the time of closing with over 30 percent of the units being vacated by existing owners.
Terms were 10-year fixed with an interest rate of 3.82 percent fixed and a 25-year amortization, interest only for the first two years of the term and full recourse. The borrowers are out-of-state investors building a large portfolio of properties around the Chicago market.
The three-story building, located at 4601 N. Dover Street in Chicago’s Uptown neighborhood, was initially built in 1925 as apartments and it later converted to condominiums in 2007. The units are predominantly one-bedrooms, with a small percentage of two- and three-bedroom units. Kiser Group brokered the sale to Neriel Lagoon LLC.