Waterton Secures $171M in Financing for North Harbor Tower
The fixed-rate loan through Freddie Mac’s Green Advantage program has a seven-year term and will be serviced by HFF, a Freddie Mac Optigo lender for conventional loans.
CHICAGO—Locally based real estate investment firm Waterton has secured $171.2 million in financing for its 600-unit North Harbor Tower property here.
The funding for the high-rise apartment building at 175 North Harbor Drive in the Lakeshore East neighborhood of the city was arranged by Holliday Fenoglio Fowler, L.P. The fixed-rate loan through Freddie Mac’s Green Advantage program has a seven-year term and will be serviced by HFF, a Freddie Mac Optigo lender for conventional loans.
Waterton acquired the property in June 2018 for an undisclosed price from Crescent Heights, which purchased the building in 2016 for a reported purchase price of approximately $200 million.
At the time of the purchase, Waterton stated that it intended to implement a capital improvement program to upgrade 523 non-renovated or partially renovated units. The plan also included includes full hallway renovations, updates to the pool area and outdoor terrace, and aesthetic improvements to the community’s elevator cabs.
Originally constructed in 1988, the 55-story tower offers 360-degree views of Lake Michigan, Navy Pier, the Museum Campus, Maggie Daley Park, the Chicago River and downtown Chicago. The property consists of 96 studio, 72 convertible, 234 one-bedroom, 108 two-bedroom and 90 three-bedroom units averaging 958 square feet in size. Community amenities include an indoor swimming pool with retractable doors; outdoor sundeck; outdoor activity area with fire pit and lounge; 24-hour fitness center; party room with billiards; 24-hour library and access to local expressways and all of Chicago’s downtown and lakefront amenities.
The HFF debt placement team that worked on the transaction was led by managing director Stephen Skok and directors Stella Pappas and Gregory Napper.
Late last month, Waterton announced the grand re-opening of The Citizen at Shirlington Village, a newly renovated 404-unit rental community at 3000 S. Randolph St. in Arlington, VA. Waterton updated the property with resident-centric services and amenities that focus on working professionals while also inspiring a broader sense of community.
Privately-held Waterton, as of Dec. 31, 2018, had a portfolio that included approximately $4.9 billion in real estate assets.