MCHENRY, ILL. — Berkadia Commercial Mortgage has originated two permanent, fixed-rate loans totaling approximately $24.1 million for two multifamily properties in McHenry. The 35-year, fully amortizing loans both carry an interest rate of 4.63 percent. Westside Crest Apartments received an approximately $7.14 million loan and Fawn Ridge Apartments received a $16.96 million loan. John Oharenko, Tom Sigrist, Paul Matusiak and Laura Cathlina of Berkadia’s Chicago office secured the loans through the company’s FHA/HUD program. The borrowers were Westside Crest LP and Fawn Ridge Apartments LP.
CHICAGO — Essex Realty Group has completed the disposition of a two-story, eight-unit mixed-use building in Chicago. Located at 2309-2311 W. Howard, the property offers six two-bedroom apartment units and 6,200 square feet of commercial space. Matt Welke and Jim Barcelona of Essex brokered the transaction. The sales price was approximately $750,000. The seller and buyer were not disclosed.
ST. LOUIS — The Chicago office of Holliday Fenoglio Fowler (HFF) has arranged a $10.75 million loan for Gateway Tower, a 20-story, Class A office tower in St. Louis. The 213,228-square-foot tower is 95 percent occupied by a variety of tenants, including KMOV-TV, Fox Galvin, Infinity Broadcasting Corp. and East-West Gateway Council. Matthew Schoenfeldt of HFF secured the financing through Ladder Capital Finance for the borrower, Sovereign Partners.
DARIEN, ILL. — The University of Chicago Medical Center has renewed its lease at the 175,969-square-foot Darien Business Center in Darien. The medical center occupies 62,399 square feet of medical office space at 7955 and 8205 S. Cass Ave. Jason Streepy and Linda Garske of Grubb & Ellis Co. negotiated the lease on behalf of the landlord, Grubb & Ellis Realty Investors. Andrew Davidson and Jay Beadle of MB Real Estate represented the tenant. Terms of the transaction were not disclosed.
The retail market in Chicago, mirroring that of the nation, has been plagued with vacancies as a result of retailers suffering from lack of consumer demand. From 2003 to 2008, roughly 80 percent of the American GDP was comprised of spending. This means that the country’s output, or contribution to the world, has been focused on consumption. By contrast, from 1990 to 2006, the earnings of individual workers in the United States increased by less than 0.5 percent per year, while the GDP increased about 3.6 percent per year. This consumer psychology led to increased debt and home equity lines of credit given to many unqualified borrowers. The additional debt introduced to the American economy enabled people to spend money on items they were not, in reality, able to afford. How does this shift in consumption impact retail real estate in the third largest metropolitan statistical area in America? It moves the consumer to buy goods based on need and reduces the retail therapy or impulse buy. In the same way, business owners also make cuts in acquiring goods for luxury and begin focusing on the items needed for basic survival. Add to that a staggering 11 percent unemployment rate …
NOBLESVILLE, IND. — An undisclosed Los Angeles-based investor has acquired Harbour Town Apartments and Condominiums on Morse Reservoir near Noblesville. The property features a 120-unit apartment community and a newly developed building that offers 45 luxury condominiums. The 17.6-acre complex also features a clubhouse with a workout center, tennis courts, a swimming pool, spacious grounds, private docks and access to Morse Reservoir. T. Scott Pollom of Colliers Turley Martin Tucker represented the buyer in the all-cash transaction. Additional terms of the transaction were not disclosed.
EVANSTON, ILL. — Mesa West Capital has provided a $14.5 million loan to an affiliate of Greenfield Partners. The financing will be used for the recapitalization of the borrower’s existing loan on Orrington Hotel, a full service hotel in Evanston. The nine-story hotel offers 269 guestrooms, a 12,000-square-foot conference facility, 12,000 square feet of meeting and banquet space, a café, a restaurant, a bar and lounge and a fitness center. Jay Marshall of Holliday Fenoglio Fowler arranged the financing, which also included capital to convert the hotel to the Hilton brand. Additionally, the property includes a four-story, 178-car parking garage and four fully occupied retail spaces. Greenfield Partners will oversee the hotel conversion, while Magna Hospitality Group will provide hotel management services.
LIVONIA, MICH. — Crawford & Co. has signed a lease for 8,398 square feet of office space at 17197 Laurel Park Drive in Livonia. Crawford & Co. will occupy 6,933 square feet and Broadspire, a Crawford Company, will occupy 1,465 square feet at the property. Keith Grebinski of Friedman Real Estate Group represented the tenants in the transaction. NAI Farbman represented the landlord as a trustee.
SANDUSKY, OHIO — Plano, Texas-based Cinemark Holdings is developing a 12-screen, stadium-seated movie theatre at Sandusky Mall Complex in Sandusky. The formal ground breaking is scheduled for March 1, with completion slated for December. The Cinemark Sandusky Theatre will offer digital and 3-D capabilities, stadium seating, online print-at-home ticketing and a self-serve concession stand.
INDEPENDENCE AND FERRELVIEW, MO. — Benjamin Kadish of Maverick Commercial Mortgage has arranged a $1.25 million first-mortgage loan for two mobile home parks in Missouri. The properties are the 120-home Midwest Mobile Home Park in Independence and the 106-home Ferrelwood Mobile Home Park in Ferrelview. A regional portfolio lending institution provided the financing.