Cohen Financial arranges $36m in Chicago CMBS loans

Morgan Stanley, through its CMBS platform, has provided $35.925 million on the acquisition of three multifamily properties in the Chicago suburbs.

Morgan Stanley has originated $36 million in CMBS loans on the acquisition of three multifamily properties in the Chicago suburbs in a deal arranged by Cohen Financial.

Autumn Ridge Apartments, Park Forest, Illinois
Autumn Ridge Apartments, Park Forest, Illinois

The three fixed-rate, 10-year loans with 30-year amortization were made to an affiliate of the Chicago-based real estate investment company Ferndale Realty Group, a longtime Cohen Financial client.

“Ferndale was pleased with the terms of the acquisition financing, particularly given the recent volatility in the CMBS markets,” said Dan Rosenberg, managing director of Cohen Financial in the Chicago office, in prepared remarks.

The financings include a $19.8 million loan on the 384-unit Autumn Ridge Apartments and a $11.4 million loan on the 220-unit for Central Park Apartments, both in the suburb of Park Forest, Illinois, and a $4.725 million loan for Governors House Apartments, a 96-unit property in University Park, Illinois. All properties have been renovated and are well leased, according to Cohen Financial.

Earlier this month, Morgan Stanley provided a £320 million senior loan to Blackstone to refinance its Devonshire Square mixed-use estate in London. Last month, Morgan Stanley, in a joint venture with Blackstone, provided a $335 million acquisition loan to HNA Capital and MHP Real Estate Services for the acquisition of 850 Third Avenue in midtown Manhattan.

Ferndale Realty Group focuses on apartment communities throughout the US, and the company has been involved in the acquisition and operation of approximately 24 multifamily communities totaling over 4,300 units, according to its website. Cohen Financial is a commercial real estate capital services firm offering debt and equity placement, loan administration and advisory services.