Silverpeak Provides $33M Refi for Chi-Town Multifamily Property
The building was previously a condominium tower.
Strategic Properties of North America (SPNA) has nabbed a $33 million floating-rate bridge loan from Silverpeak to refinance The Kent, a multifamily property in Chicago, Ill. sources told Commercial Observer.
SPNA acquired the The Kent—located at 2625 North Clark Street in the city’s Lincoln Park neighborhood— in December 2016 as a condo deconversion project. The property has undergone a significant renovation program since then, transforming its previous 133 condo units into Class-A luxury apartments.
“While SPNA has already extracted substantial value from this property through the deconversion, their business plan includes unlocking additional value by converting the units into top-of-the-line apartments,” Ackerman said in prepared remarks. “Now that the renovations are complete, this bridge loan will allow them to complete the final stages of property stabilization.”
The property sits three miles north of Chicago’s central business district and two miles from Wrigley Field. Its amenities include a fitness center, a boardroom, and a bicycle storage room.
An active developer in the condo deconversion space, SPNA scored $72 million in acquisition financing from Ladder Capital for its $78 million purchase of Kennelly Square —a 268-unit Chicago condominium tower—in June 2018. Ackerman and Sonnenschein also arranged that financing, in fact The Kent transansaction marks the debt duo’s fifth condo conversion deal with SPNA.
Officials at Silverpeak couldn’t immediately be reached for comment.