NORTHBROOK, ILL. — PACE Loan Group has provided a $6.2 million C-PACE loan that was part of a $32.8 million refinancing package for the former Northbrook Marriott hotel in suburban Chicago. The loan was a retroactive payback for property improvements that were completed from 2019 to 2022. The enhancements included roofing and insulation, weatherization, HVAC, plumbing, LED lighting, elevator improvements, common area and public space renovations and elevator upgrades. Now flagged as a Renaissance brand, the hotel includes 391 rooms across two towers, which were built in 1973 and 1986. Matthew McCormack of PACE Loan Group originated the loan. The PACE funding entity is managed by the City of Northbrook under the provisions of the Illinois Finance Authority PACE Program.
GLENDALE, ARIZ. — JLL Capital Markets has arranged $96.5 million in construction financing for The Base Phase I, a seven-building logistics development totaling 1.2 million square feet in Glendale. Kevin MacKenzie, Jason Carlos and Jarrod Howard of JLL Capital Markets Debt Advisory team secured the financing through Bank OZK for the borrower, ViaWest Group. Situated on 82.5 acres, the property will feature buildings ranging from 80,000 square feet to 310,000 square feet with clear heights up to 36 feet. In total, the development will offer 105 trailer parking spaces, 1,325 auto parking spaces, 236 dock-high doors and 38 grade-level doors in rear-load and cross-load configurations. The buildings are designed to accommodate a wide range of divisibility between 20,000 square feet and full-building users up to 310,000 square feet. The Base Phase I, is slated for delivery in the fourth quarter of 2024.
NEWPORT BEACH, CALIF. — PSRS has arranged $4.8 million in refinancing for Newport Channel Inn, an independent limited-service hotel in Newport Beach. Constructed in 1962 and renovated in 2013, the hotel features 31 guest rooms. Jacob Lee and Thomas Rudinsky of PSRS arranged the loan, which features a five-year term and a 30-year amortization schedule. A correspondent life insurance company provided the capital.
AURORA AND PALATINE, ILL. — PGIM Real Estate has provided a $66 million loan for the refinancing of two newly built industrial properties in suburban Chicago. The assets, which include 90 Logistics Center in Palatine and 2800 W. Diehl Road in Aurora, total 760,669 square feet. The borrower, Logistics Property Co., will use proceeds of the loan to pay off construction debt, cover closing costs and return equity to the company. Craig Foreman of PGIM originated the fixed-rate loan.
No one in the multifamily sector needs a lecture on the difficulty of financing projects and deals these days. But, when there are challenges in the market, attention to detail and alternative financing can result in a better chance of finding solutions. Considering life insurance companies as viable investors is one example. Insurers often can provide needed liquidity as they search for yield, especially in the multifamily world. Multifamily fell to the same forces that have affected every other commercial real estate (CRE) class. After a buildup of easy money over more than a decade, the zero-interest rate policy in response to the pandemic collapse set asset investment on fire. Prices soared, opportunities were widespread and big leverage was in. “Starting in 2019/2020, you saw a lot of floating-rate bridge money,” says Susan Mello, executive vice president and group head of capital markets at Walker & Dunlop. But as loans came up for refinancing, quick and large Federal Reserve hikes of the benchmark federal funds rate kicked up loan costs everywhere and made penciling a deal difficult, if not impossible. “The rapid rise of interest rates put values in question across the board. That’s exacerbated by how much liquidity there …
THOUSAND OAKS, CALIF. — JLL Capital Markets has arranged $43.2 million in financing for Varenita of Westlake, an 86-unit assisted living and memory care community in Thousand Oaks, approximately 40 miles west of Los Angeles. JLL represented the borrower, Westlake Senior Living Center LLC, to secure the five-year loan from a regional bank. The Class A community consists of 58 assisted living units and 28 memory care units across three stories with surface and underground parking. The community features a mix of predominantly one-bedroom units, with some studios and two-bedroom units. Varenita of Westlake is located within walking distance of some of the nation’s largest retailers and less than four miles from The Oaks, an open-air and enclosed shopping center. Alanna Ellis and Ace Sudah led the JLL team.
SAN ANTONIO — Locally based developer Zachry Hospitality will develop a 200-room hotel within the Hemisfair Park mixed-use development in downtown San Antonio. The hotel will operate under the Curio Collection by Hilton brand and will feature a signature restaurant and bar, café, rooftop bar, underground speakeasy bar, pool with cabanas, spa, fitness center and a public garden. Jay Wagley, Frank Piasta, Bond Foster and Ham Berry of CBRE arranged construction debt on behalf of Zachry Hospitality. Interbank is the senior lender on the construction loan.
LEBANON, TENN. — JLL Capital Markets has arranged a $40 million loan for the acquisition of Alligood Industrial Park, a two-building industrial development located in Lebanon, roughly 30 miles east of Nashville. Totaling 410,370 square feet, the development features 32-foot clear heights, 135-foot truck courts, 76 dock doors and ESFR sprinklers. Aldon Cole, Brian Carlton and Brad Vansant of JLL secured the five-year, fixed-rate financing on behalf of the buyer, Pearlmark Real Estate.
SAN JOSE, CALIF. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $3.8 million loan for the refinancing of Tully Commercial Center, a retail property in San Jose. Located at 1055-1095 Tully Road, Tully Commercial Center features 15 freestanding retail spaces. Current tenants include Little Caesars, Hawaiian BBQ, a hair and nail salon, and a dry cleaner. David Campbell of MMCC’s Palo Alto office secured the financing, which features a seven-year term and 25-year amortization.
MEDFORD, N.Y. — iBorrow, a Los Angeles-based commercial bridge and direct lender, has provided a $5.1 million acquisition loan for a 41,000-square-foot industrial property located in the Long Island community of Medford. The facility sits on 3.1 acres and features a clear height of 22 feet, five drive-in doors and one loading dock, as well as proximity to Montauk Highway and the Long Island Expressway. The borrower was not disclosed.