DEERFIELD, IL-Rreef's Chicago office has obtained a $21.9 million loan from Prudential Mortgage Capital Co. to cover the $35 million acquisition cost of Deerfield Village Centre, a six-year-old, 124,423-sf mixed-use development 28 miles north of Downtown Chicago. Rreef bought the asset for an undisclosed client April 13 from the joint venture developers, Chicago-based Mesirow Stein Real Estate Inc. and Northern Realty Group Ltd.
Brian E. McAuliffe, a managing director in Rreef's Chicago office, tells GlobeSt.com he wasn't sure what the loan proceeds would specifically be used for. Mike Kavanau, a senior managing director in the Chicago office of Holliday Fenoglio Fowler LP, brokered the 10-year, fixed-rate loan. "The (Deerfield Village Centre) development benefits from its infill location, bounded by a three-mile radius in which the average household income is $150,000. The combination of irreplaceable real estate, outstanding sponsorship and attractive leverage made this a strongly bid financing."
Kavanau says the 44,083-sf ground-floor retail and 20,216-sf office components of the six-year-old development are 100% leased. The 56 one-bedroom and two-bedroom apartment homes are 91% occupied. Retail tenants include Orvis, Red Star Taverns, Blockbuster, Chipotle, Pearle Vision, Baker Furniture, Leather Creations and Starbucks. The 4.31-acre center at 625 Deerfield Road was developed in 2000 for about $25 million or about $200 per sf. The sale price equates to about $281.30 per sf, according to Rreef research. The property is in the southeast quadrant of Deerfield and Waukegan Roads.
In two unrelated financing transactions, Oak Brook, IL-based Inland Commercial Mortgage Corp. brokered a $12.5-million construction loan on a 43,825-sf mixed-use, four-building residential and retail development on the south side of Chicago, and a $6-million acquisition loan on a 37,775-sf shopping center in west suburban Bensenville, IL.
On the construction loan, the borrower received 92% of the construction cost. The loan-to-value ratio was 83%. Inland Bank and Inland High Leverage Capital Corp. provided the floating, interest-only loan on a 24-month term. Inland Commercial Mortgage Corp. president Michael S. Poe and production associate Sean Sheeran handled the transaction.
In the Bensenville shopping center financing, Column Financial Inc., the New York City-based commercial real estate lending arm of Credit Suisse, provided a fixed 10-year, 5.96% rate loan amortized over 30 years. The non-recourse loan was financed at 81% of the property's value, with another 5% mezzanine loan taking it to an 86% loan-to-acquisition price, according to Poe. Poe and Sheeran also brokered this transaction. The property's 26 spaces were 88% leased at closing.
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