Holliday Fenoglio Fowler, L.P. (HFF) secured $36.08 million in financing on behalf of the partnership between Origin Investments and Randolph Street Realty Capital. The funds will go towards Iroquois Club Apartments, a once-fractured condominium property located in the western Chicago suburb of Naperville, Illinois.
The hybrid loan, acquired through an insurance company, comprises a $35 million fixed-rate and $1.08 million floating-rate component and includes interest-only amortization and a flexible prepayment structure after month 36. Loan proceeds were used to pay off existing debt, fund loan closing costs and renovate a portion of the units. The HFF team representing the borrower included managing director Josh Simon and senior director Jason Bond.
The partnership formed a joint venture and acquired the Iroquois Club, a 264-unit apartment complex, for approximately $38 million in September 2015. Since the acquisition, the partnership renovated the clubhouse, transforming an old, outdated area into a modernized, spacious area for tenants to congregate. Additionally, unit renovations were performed to stabilize occupancy and increase rental rates. Average in-place rents have been increased by approximately 23 percent since acquisition.
Iroquois Club Apartments is located at 1101 Iroquois Avenue, approximately 25 miles west of Chicago and immediately south of Interstate 88. The property consists of two four-story, elevator-served buildings that are connected by a two-story main lobby with units featuring a mix of studio to three-bedroom floor plans averaging 884 square feet. Community amenities include a year-round pool and sauna, two full-size tennis courts, fitness center, clubhouse, resident lounge with fireplace, billiards and kitchen/bar and on-site jogging trails.