Pillar refinances Chicago affordable housing

Pillar has provided a $30m fixed-rate, 35-year HUD 223(f) loan to UCA II, LLC, to refinance the Circle Park Apartments, a 418-unit, 19-building affordable housing property in Chicago, Illinois.

Pillar has provided a $30m fixed-rate, 35-year HUD 223(f) loan to UCA II, LLC, to refinance the Circle Park Apartments, a 418-unit, 19-building affordable housing property in Chicago, Illinois.

The complex — consisting primarily of two and three-story structures plus one eight-story mid-rise building — is located at 1111 South Ashland Avenue and Roosevelt Road, southwest of Chicago’s Loop in the University Village and Little Italy submarkets of Chicago.

download“Cohen Financial originally financed Circle Park Apartments in 2005 with a CMBS loan that matured,” said Don Trossman, managing director of Cohen Financial, who arranged the financing with vice president Jason Ross.

“Cohen Financial and Pillar together sourced potential debt options for the borrower through Fannie Mae, Freddie Mac and CMBS lenders, eventually deciding to obtain a fixed rate, 35-year HUD 223(f) loan. Pillar’s professionals expertly guided the borrower through the HUD process.”

Circle Park Apartments was approximately 98 percent occupied at the time of financing and for the three years prior. It was built by the sponsorship in 1983.

“There is a desire in place at HUD, Fannie Mae and Freddie Mac to finance affordable housing, and Chicago currently features a very robust multifamily housing market,” Trossman added.

Cohen Financial also arranged $106m in financing for a San Francisco, California-based multifamily commercial real estate owner and investor earlier this month.

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