Dealmaker: Red Oak Capital Holdings Provides $8.3M for Illinois Office Park

(Prairie Stone Commons, Hoffman Estates, Ill.)

Red Oak Capital Holdings, Grand Rapids, Mich, provided $8.3 million to complete refurbishment and re-tenanting an office property in Hoffman Estates, Ill.

The sponsor entity, YP Trillium LLC, is managed by Zaya Younan, President and CEO of investment and brokerage firm Younan Properties Inc., Los Angeles.

Situated on 7.5 acres within the Prairie Stone Business Park in northwest Cook County, Ill., Prairie Stone Commons’ two Class B office buildings total 102,000 square feet. Built in 1996 and 2000, the buildings are connected by a walkway on the upper floors.

Red Oak provided the sponsor with an $8.3-million bridge loan structured with a 24-month initial term and two six-month renewal options. The loan represented a loan to “As-Stabilized” value of 67.7% based on its expected value upon completion. The debt carried an 8.25% interest rate.

“Despite the lackluster performance of the general office sector, the combination of a highly experienced sponsor with a firm business plan and the property being located in a top-tier market, made the decision to fund this loan an easy one,” Red Oak said in a statement. “Prairie Stone Commons is situated within one of the top submarkets in Greater Chicago, which itself ranks as the third MSA in the country, with a large, diverse economy.”