American Street Capital (ASC) has arranged $15.4 million in permanent loans for the cash-out refinance of a seven-building multifamily portfolio in the South Side’s Bronzeville and Kenwood neighborhoods. The loan was co-originated by ASC’s Igor Zhizhin and Alexander F. Rek.
The sponsor, an experienced owner and operator throughout Chicago, requested a non-recourse, high leverage floating rate loan with maximum proceeds and a flexible pre-payment structure for a dispersed pool of properties.
To ensure the maximum proceeds and flexibility, ASC simultaneously structured seven individual non-recourse loans with a highly competitive spread over the one-month LIBOR, with only a 1% pre-payment penalty.
The properties were all recent acquisitions acquired from long-term owners, and all required significant amenity and management upgrades.
Ownership achieved its business plan and stabilized the properties, offering above-market amenities to both market-rate and subsidy tenants. The portfolio was over 90% occupied at closing.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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