Chicago & Midwest + Downtown + Finance | January 24, 2019

River City Condo Deconversion Lands $94M First Mortgage

Maverick Commercial Mortgage has closed on a $93.8-million first mortgage loan for River City, a 447-unit condominium building in the South Loop. The new ownership, including Elliott, the Wolcott Group, Ruttenberg-Gordon Investments and Marc Realty Residential, will deconvert the property into rental apartments.

The non-recourse, interest-only loan was funded by Silverpeak Argentic, a national bridge and CMBS lender. The loan has an initial 36-month term, with two 12-month extension options.

The loan funded 70.5% of project costs that included acquisition of River City, an interest reserve, closings costs and future capital draws to fund the borrowers’ renovation plans.

The new owners, who closed in December after nearly three years’ work on the deal, have begun renovations, which will extend to all residential units and include face-lifts to the common areas, lobbies and amenity areas. River City’s deconversion marks the largest of its kind to date in the Chicagoland area.

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About Paul Bubny

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. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).