New Jersey based Strategic Properties of North America (SPNA)
has partnered with South Korean investor Mirae Asset Daewoo to acquire a luxury
Chicago apartment building for $154 million.
Newmark Knight Frank Multifamily (NKF) arranged $102.5 million financing for the acquisition of Cityfront Place, a Class-A, 39-story 480-unit waterfront high rise located along the Chicago River with views of Lake Michigan.
According to NKF, SPNA identified this property as a prime candidate for its value-add program and approached NKF Capital Markets Strategies Group, headed by president Anthony Orso to source both the debt and equity.
The NKF Group also introduced SPNA to Mirae Asset Daewoo and
acted as advisors to the joint venture partners and on the debt financing.
NKF executive managing director Henry Stimler and managing director
Charles Han worked with Matt Mense and Dan Sarsfield to deliver five-year
Freddie Mac fixed-rate, full-term interest-only debt for $102,500,000 at three
percent.
“This transaction showcases our ability to deliver an
exceptional execution in one of the most volatile and disruptive markets,”
said Stimler. “NKF Capital Markets Strategies group also introduced Mirae
Asset Daewoo as a new player to the multifamily market and served as advisors
to the buyers on complex negotiation and partnership formation that required
significant cross-team collaboration.”
The joint venture was drawn to the property’s prime location
near healthcare and educational institutions with a strong workforce making it
an excellent investment while mitigating any potential market disruption. The
new owners are planning several property upgrades, enlisting Lincoln Properties
to manage the asset.
“This transaction is an important victory for the new
joint venture given the property’s planned high-quality improvements and its
coveted location near potential employers, neighborhood amenities and
landmarks,” said Han. “The timing for the purchase is incredibly
fortunate for the new partnership as we were able to secure exceptionally
favorable debt terms for this coveted multifamily investment.”
DWS, a unit of Deutsche Bank, hired the Chicago office of CBRE to sell Cityfront Place last February. DWS paid $107 million for the 39-story building in 2011.
