NKF Provides $61M in Agency Debt on Suburban Chicago Multifamily Buy


Newmark (NMRK) Knight Frank’s multifamily capital markets group has originated just over $61 million in Freddie Mac (FMCC)-backed debt to a joint venture between Cantor Fitzgerald and BH Equities to finance its acquisition of Railway Plaza, a garden-style multifamily property located in Naperville, Ill., Commercial Observer can first report. 

The borrowers locked in the 10-year, fixed-rate agency financing in a deal that was facilitated by an NKF team made up of executive managing director Bill Weber, managing director Henry Stimler and vice president Daniel Sarsfield. The purchase price could not be gleaned. 

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“This acquisition on behalf of BH Equities and Cantor Fitzgerald showcases the strength of the multifamily market in growing areas across the country,” Stimler said in a prepared statement. “Multifamily properties like Railway Plaza that are well-maintained and well-located continue to be a strong choice for institutional investors looking to expand their portfolio of properties.”

The 417-unit property — at 507 Railway Drive in Naperville, which is around 33 miles west of Chicago’s downtown and sits adjacent to the Route 59 train station, leading into the city — was built in 2000 and is made up of 13, three-story buildings. BH affiliate BH Management operates the property, as per its website. 

The site features a recently renovated clubroom, a 24-hour fitness center, a business center and “cyber lounge,” an outdoor pool and sun deck, a fire pit and outdoor grilling stations, and covered pavilions, as per the property’s website. There is also a limited number of private car garages available to some tenants. 

The apartments, which are one- and two-bedroom residences, include private patios and balconies, a fireplace, and each has in-unit washers and dryers, according to the property’s website.

Monthly rents at the site range from around $1,200 for one bedrooms to just over $2,500 for two-bedroom units, according to information from Apartments.com. 

NKF, through its multifamily capital markets and debt and structured finance divisions, recently facilitated a similar transaction for BH and Cantor in suburban Chicago. In November 2019, NKF originated a $50.8 million Freddie Mac-backed loan to the duo to fund its $78 million purchase of Aurora at Summerfield a multifamily complex in located Aurora, Ill., not far from Railway Plaza — from The Connor Group, as CO previously reported. 

Officials at BH and at Cantor did not immediately respond to inquiries.