The sponsor, a seasoned owner and operator throughout Chicago, requested a non-recourse, high leverage floating rate loan with maximum proceeds and a flexible pre-payment structure for a dispersed pool of properties in two South Side of Chicago neighborhoods. To ensure the maximum proceeds and flexibility, ASC simultaneously structured seven individual non-recourse loans with a highly competitive spread over the 1-month LIBOR with only a 1% pre-payment penalty.
The properties were all recent acquisitions that the operator acquired from long term owners that required significant amenity and management upgrades. Ownership successfully achieved their business plan and stabilized the properties offering above market amenities to market and subsidy tenants. The portfolio was over 90% occupied at closing.
The loan was co-originated by Igor Zhizhin and Alexander F. Rek.
About American Street Capital
American Street Capital (“ASC”) is a Chicago-based national commercial real estate finance firm with correspondent lending relationships specializing in securing balance sheet and CMBS loans for multifamily, mixed-use, student housing, mobile home parks, assisted living, hospitality, retail, office, owner-occupied properties, and traditional investment properties. With its diverse correspondent relationships ranging from private lenders to government agencies, ASC offers a consultative, customized approach to sourcing commercial real estate debt that is unique among its competitors. Focusing primarily on the more challenging transactions in the small balance segment for loans up to $50MM, ASC has established a national reputation of offering best in class customer service and loan structures that historically were exclusively available to large balance institutional clients. Further information is available at www.amstcap.com. Follow American Street Capital on Twitter @AmericanStCap.
American Street Capital