Noah Properties has landed a $62.5 million lease-up financing for a newly built multifamily development in suburban Chicago, Commercial Observer has learned.
Walker & Dunlop Investment Partners (WDIP) loan origination for 945 Nanusha Residences in Buffalo Grove, Ill. The construction debt refinance agreement is ahead of the temporary certificate of occupancy (TCO), before the lease-up process.
Arrow Real Estate Advisors negotiate the transaction with the team led by Morris Betesh and Jacob Petrovic. The refi is structured to reserve interest through leases to fund ongoing project costs and cover real estate tax and insurance costs, according to Arrow.
“WDIP stepped up in the pre-TCO takeout that materially reduces Noah’s cost of capital, carries out the property all the way through stabilization in one loan and closed in approximately 30 days from sign-up,” Petrovic, director at Arrow Real Estate Advisors, said in a statement.
Betesh, founder and managing partner at Arrow, said Chicago and the Midwest have “core growth priorities” for the broker this year, with 945 Nanusha Residences showing this conviction “high quality products in deep suburban submarkets.”
Located in 945 North Old Arlington Heights Road about 30 km northwest of Downtown Chicago, 945 Nanusha Residences consists of 223 apartments in 231,970 gross square meters. Resident amenities include a courtyard, swimming pool, cabanas, outdoor grilling area, rooftop lounge with fire pit, fitness center and electric vehicle charging station.
WDIP and Noah Properties did not immediately return requests for comment.
Andrew Coen can reach it acoen@commercialobserver.com.