The PrivateBank has provided a $25 million bridge loan for the acquisition and renovation of the Timber Creek Apartments in the Woodridge, Illinois suburb of Chicago.
The financing allows the borrower, a group of investors including the Stadt Group, to upgrade and reposition the asset through a $4-$8 million renovation that will include new unit interiors, roofs, clubhouse and exterior amenities.
The new ownership group paid a reported $25 million for the asset. The Class B multifamily community property, built in 1974, at 3421 Foxboro Drive, features 304 garden-style units and was approximately 88 percent rented upon acquisition.
“Cohen Financial secured a nonrecourse loan, providing the client the necessary funds to upgrade the property allowing value creation by modestly increasing rents in line with current market rates,” said Michael Hart of Chicago-based Cohen Financial, who arranged the financing with and Don Trossman, in a prepared statement. The firm declined to provide details on the loan’s terms.
Earlier this month Cohen Financial arranged the $110 million financing for Property Markets Group’s first development project in Miami, Florida, a rental tower known as 300 Biscayne. The previous month the firm arranged another Chicago loan, a $36 million CMBS loan on the acquisition of three multifamily properties.