Pembrook Capital Management is to provide USD2.75 million in preferred equity financing to fund the remaining renovation and construction costs for 1325 W Wilson Ave, a 12-storey apartment complex in Uptown Chicago.
The borrower, Cedar Street Capital Partners, previously secured a construction loan to finance the renovation of the entire 1325 W. Wilson property, which included updating and modernising the existing apartments into high-end units.
The borrower recently increased the scope of renovation work on the project, including the addition of five more units, a new roof deck, an upgrade to the interior finishes and added construction costs.
The preferred equity investment from Pembrook will finance the cost for this additional work and allow the project to meet its target completion date of 31 December 2014.
"This development required additional funding to meet the revised scope of work and Pembrook was able to create a customised preferred equity solution with attractive terms for the borrower," says Stuart J Boesky, CEO of Pembrook. "When renovations are completed, we believe this property will be well-positioned to take advantage of the solid real estate market conditions in the competitive Chicago multifamily market."
1325 W Wilson Ave was originally built in 1928 and features 64,000 square-feet of total space and 43,494 square-feet of net rentable area. Upon completion of the capital improvements, the building will include 121 residential units, three grade level retail spaces and a basement space. The business plan for the property will be to lease up the units during 2015 with a portion of the property pre-leased during the construction period.