Kayne Anderson Real Estate and CEDARst Companies have landed a $91.05 million loan for their recent purchase of luxury mixed-use residential tower, Millie on Michigan, located in Chicago.
The financing is being provided by Invesco Real Estate. The loan will not only support the acquisition but also future improvements at Millie, which was just recently built in 2022. The upgrades will focus on the retail component and aim to boost tenants' experiences.
The two firms first announced the acquisition of the 47-story tower in Chicago's Loop in July. The joint venture has referred to the deal as "one of the largest" transactions completed since the pandemic. CEDARst CEO Will Murphy said at the time that the deal represented an opportunity to acquire a top-performing multifamily property in a market where supply is scarce.
“This financing provides the resources to further strengthen Millie on Michigan,” Murphy said in a statement today.
“We’re focused on enhancements that elevate the resident experience while reinforcing our long-term commitment to Chicago’s multifamily market.”
Millie consists of 289 luxury apartments and 25,000 square feet of retail space. As of July, the property's occupancy was over 95 percent. Also, amenities are included such as coworking spaces, a pool on the rooftop, a fitness center, smart home technology and a lounge.
CEDARst operates more than 5,000 multifamily units in Chicago.
For multifamily, Chicago is the leader in terms of rent growth, according to a mid-year national analysis posted by Berkadia. Year-over-year in the second quarter, rents climbed by 8.1 percent to $2,187. Chicago's occupancy for multifamily is hovering around 97 percent.
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