Annaly Capital Management has provided $27.6 million to Irvine, Calif.-based The Bascom Group and Stamford, Conn.-based Spirit Investment Partners to refinance a rental building located just outside of Chicago, Commercial Observer has learned.
The two-year, floating-rate loan, which includes two one-year extension options, is backed by Vivian Apartments, a 160-unit apartment building in Chicago’s Rogers Park neighborhood. The mortgage’s 76 percent loan to value suggests a roughly $36.3 million valuation.
The funds were used to retire approximately $26.7 million in previous debt from First Midwest Bank and Hillcrest Capital Partners and to fund reserves and pay closing costs, sources said. First Midwest had supplied a $20.7 million senior loan, while Hillcrest contributed nearly $6 million in mezzanine financing, sources told CO.
A JLL team consisting of Jamie Leachman, Drake Greer, Jason Bond, Will Butler and Jim Hurson sourced and arranged the debt.
In 2016, the borrowers underwent a $9.6 million renovation campaign on the asset, which finished in the winter last year. Work included upgrades to the lobby, exterior masonry and most of the residences and the addition of amenities such as a fitness center, a laundry room, a rooftop club room and an outdoor deck.
The 9-story, 81,261-square-foot property — at 6807 North Sheridan Road, just north of Chicago — also has around 11,000 square feet of ground-floor commercial space. The property is just several blocks Red line train stop at Loyola University which runs through downtown Chicago.
Monthly rents range from around $1,000 for studios to nearly $1,700 for one-bedroom units, according to information from Apartments.com.
Officials at Spirit and The Bascom Group could not be reached for comment.