CHICAGO-Construction of two of the newer additions to the Central Station development, a 411-unit multifamily rental tower and 111-unit senior housing building, is being financed with nearly $80 million in tax-exempt, variable-rate demand bonds issued by the city. The financing package was arranged by Horsham, PA-based GMAC Commercial Mortgage Corp.

The loan gives Cleveland-based Forest City Enterprises three years to build the 42-story rental and 11-story senior housing buildings at the northeast corner of Michigan Avenue and 13th Street, as well as lease up the 502 units. The two buildings also will have ground-floor retail space. However, the lead developer of the massive multifamily development in the burgeoning South Loop neighborhood has the ability to tack on an extra two years if needed.

Plans for the $122-million project were endorsed nearly two years ago by the city’s community development commission, which is using tax increment financing, low-income housing tax credits and a property tax break to help make the numbers work for Central Station Development Corp. In exchange, the developer pledged to set aside 176 units for renters qualifying under the city’s affordable housing initiative.

GMACCM vice president Christopher Blechschmidt of the Chicago loan origination office quarterbacked the loan with affordable housing division vice president Barry Krinsky and construction lending senior vice president Peter Kisluk.

“We often use GMACCM for our large, complex transactions,” says Forest City Residential Group president Ronald A. Ratner. “Their ability to provide all financing components necessary for this project helped us save a lot of time and money.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.