Newmark Lends $51M for JV Purchase of Chicago-Area Multifamily Property
Newmark (NMRK) Knight Frank, through its multifamily capital markets division, has provided $50.8 million in Freddie Mac (FMCC)-backed debt to a partnership between BH Equities and Cantor Fitzgerald for the pair to purchase Aurora at Summerfield, a sizable multifamily complex in Aurora, Ill., Commercial Observer has learned.
The agency loan covered the joint venture’s purchase of the suburban Chicago asset from luxury multifamily owner and investor The Connor Group; the firm bought Aurora at Summerfield in October 2015 for $62.1 million, according to a recent report by WHIO-TV.
An NKF investment sales team out of the firm’s Chicago office, led by Debbie Corson and Susan Lawson, represented The Connor Group in the sale. Along with the arrangement of the sale, NKF’s Bill Weber, Matt Mense and Henry Stimler — out of the firm’s New York office — originated the agency acquisition loan for BH Equities and Cantor.
“This is the latest transaction where our team has demonstrated proven success to source opportunities for institutional buyers who want to invest in growth markets outside of the New York metro area,” Stimler said in a prepared statement. “Aurora is a well-maintained and well-located asset that was attractive to the new ownership. By bringing this deal to the buyer directly with our multifamily investment sales team in Chicago, we were able to secure both the sale and financing of the property seamlessly.”
Aurora at Summerfield — at 1847 Clubhouse Drive, about 40 miles West of Chicago — is a 368-unit, garden-style community that features a 24-hour fitness center, a clubhouse, an outdoor pool and gas grilling stations. Each unit includes a fireplace and full-size washing and drying machines, while select units also include private garages and outdoor patios or balconies, according to the property’s website.
Monthly rents at the location range from around $1,200 for one-bedrooms to just over $1,800 for three-bedroom units.
Officials at Cantor Fitzgerald were not immediately available for comment.