Dealmaker: Cohen Financial Secures $28M in Multifamily

Cohen Financial, Chicago, arranged $28.3 million for multifamily assets in Woodridge, Ill. and Whiting, Ind.

Michael Hart and Don Trossman, Managing Directors in Cohen’s Chicago office, arranged a $25 million bridge loan for Timber Creek Apartments., an 88 percent occupied 1974-vintage asset. The Class B community includes 304 garden-style units on Foxboro Drive in Woodridge, a southwestern Chicago suburb.

Hart and Trossman secured the loan with The Private Bank, Chicago. It closed on June 14.  Hart noted that the sponsor–a joint venture between a Chicago commercial real estate investment entity and a New York real estate company–sees an opportunity to add value through upgrading and modernizing the property. Renovations include unit interiors, roofs, clubhouse and exterior amenities. Cohen Financial secured a nonrecourse loan, providing the client the necessary funds to upgrade the property, allowing value creation by modestly increasing rents in line with current market rates, Hart said.

Hart also arranged $3.3 million to refinance City Place, a 24-unit Class A community on 119th Street in Whiting. built last year. Hart secured the non-recourse fixed-rate loan with Fannie Mae through Cohen affiliate Pillar, Vienna, Va. The transaction closed on May 31.

“We took advantage of current market conditions to lock in an attractive fixed-rate 12-year term loan. Our client, a Chicago multifamily developer/investor, will use the permanent financing to pay off the construction loan,” Hart said.