CHICAGO—Some lenders are leery of financing developments with both rental units and condominiums, but Avison Young recently overcame that challenge by securing $34 million in acquisition financing for Strategic Properties of North America so it can purchase and make improvements to Grays Pointe Apartment Complex, a 396-unit apartment complex located at 1900 Country Dr. in north suburban Grayslake. The property includes 301 rental units and 95 condominiums.
“This is not a cookie-cutter multifamily deal,” Avison Young principal Justin Piasecki tells GlobeSt.com. “You have another 95 units that are owned by individual investors. That freaks some lenders out.” But in this case, Strategic Properties has already “had an amazing response from the condo owners, who seem willing to sell.”
Piasecki is part of Avison Young's New York City-based debt, joint venture and structured capital team. He and senior associate Ethan Blum secured the loan from a lender advised by Pine River Capital Management.
Lakewood, NJ-based Strategic Properties is “an experienced group and have been very involved in the multifamily space,” Piasecki adds, part of the reason that the lender had confidence in the deal. But with the prices of multifamily properties soaring in the New York metro area, Strategic Properties is looking for solid value-add opportunities in other markets, including suburban Chicago. The firm has opened a Chicago office and owns another property about eight miles from Grays Pointe.
But this is not just a Chicago story, Piasecki says. The multifamily sector also has a lot of value-add opportunities in secondary and tertiary markets, especially in the Midwest and Southeast. “This is a national story.”
CHICAGO—Some lenders are leery of financing developments with both rental units and condominiums, but Avison Young recently overcame that challenge by securing $34 million in acquisition financing for Strategic Properties of North America so it can purchase and make improvements to Grays Pointe Apartment Complex, a 396-unit apartment complex located at 1900 Country Dr. in north suburban Grayslake. The property includes 301 rental units and 95 condominiums.
“This is not a cookie-cutter multifamily deal,” Avison Young principal Justin Piasecki tells GlobeSt.com. “You have another 95 units that are owned by individual investors. That freaks some lenders out.” But in this case, Strategic Properties has already “had an amazing response from the condo owners, who seem willing to sell.”
Piasecki is part of Avison Young's
Lakewood, NJ-based Strategic Properties is “an experienced group and have been very involved in the multifamily space,” Piasecki adds, part of the reason that the lender had confidence in the deal. But with the prices of multifamily properties soaring in the
But this is not just a Chicago story, Piasecki says. The multifamily sector also has a lot of value-add opportunities in secondary and tertiary markets, especially in the Midwest and Southeast. “This is a national story.”
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