AEW Capital Management finances purchase of Chicago apartments

AEW Capital Management has provided a whole loan totaling $105m to Crescent Heights for the acquisition of Burnham Pointe at Printer’s Row, a multi-family apartment community in Chicago, Illinois.

AEW Capital Management has provided a whole loan totaling $105m to Crescent Heights for the acquisition of Burnham Pointe at Printer’s Row, a multi-family apartment community in Chicago, Illinois.

The financing was structured with an $84m senior loan and $21m of mezzanine debt.

lsMiami-based investor and developer Crescent Heights paid Texas-based Monogram Residential Trust $126m for the acquisition of the 298-unit, high-rise building at 730 South Clark Street in Chicago’s South Loop neighborhood, putting the loan-to-value at 83 percent.

The property was completed in 2009 as a high-end condominium project but, after a series of stumbles after the recession and a lull in the condo sales market, Monogram acquired the property for $88m and subsequently leased its units as luxury apartments.

Amenities on-site at the 29-story tower include a covered parking garage, roof deck pool, a fitness center and 14,400 sq ft of retail shops on the ground floor.

AEW’s Dan Jacobson noted in a statement that the firm provides “flexible, competitively priced capital available to best-in-class commercial real estate owners like Crescent Heights.”

“We view our sponsors as partners and can provide them with asset and portfolio financing solutions tailored to fit their needs. We provide a full range of solutions, including ‘full-stack’ financing (senior mortgage plus mezzanine debt), stand-alone mezzanine debt, B-notes and preferred equity on institutional-quality properties across virtually all asset classes… in top-tier U.S. markets,” he said.

AEW and its affiliates manage $35.7bn of capital invested in $47.9bn of property and securities in North America, Europe and Asia. The firm actively manages portfolios in both the public and private property markets and across the risk/return spectrum, investing in opportunities ranging from core to opportunistic.

Towards the latter part of May, AEW and a joint venture partner secured $83m in financing for the acquisition of Woodland Park, a three-building office portfolio located in Herndon, Virginia.

SHARE