Greystone’s $55M HUD Loan Refinances Chicago-Area Multifamily Property

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Greystone has originated $54.6 million in agency debt to refinance Camden at Bloomingdale, a 360-unit, garden-style apartment community in Bloomingdale, Ill., Commercial Observer has learned. 

The 35-year, fixed-rate U.S. Department of Housing and Urban Development (HUD)-backed mortgage was provided to private investor Paul Chernawsky, who is behind the entity Chern Camden LLC. Existing Fannie Mae debt was retired in the deal, according to Greystone. 

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Greystone’s Clint Darby and Phiet Nguyen arranged and originated the financing. Chernawsky, in a statement, praised Greystone’s execution in building out the transaction, but did not comment on the asset. 

Darby said in a statement that the firm’s robust HUD originations platform and knowledge of the multifamily sector, coupled with a “creative, collaborative approach to uncovering the right terms for each client” positions it to navigate the agency product with ease.

Built in 1991, the site is located at 348 Glenwood Drive, in a suburb just about 30 miles northwest of Chicago. It’s surrounded by local schools, park and green space, and food and beverage outlets. About a block away from the property is the Stratford Square Mall, and across the street from the mall is a grocery-anchored shopping center called Stratford Crossing, which hosts a variety of tenants, from restaurants and a veterinary office to a Hobby Lobby and a TJ Maxx

Camden at Bloomingdale comprises 19 apartment buildings, which sport a mix of one-, two- and three-bedroom residences, with in-unit laundry, fireplaces, and private outdoor space, as per information from Greystone and from the property’s website. There’s a clubhouse for residents, as well as a business center and a fitness center. And, elsewhere, there’s a pool and barbecue area and a dog park. Reserved parking is also available for tenants.

Monthly rents at the property range from around $1,100 for one-bedroom units to about $2,000 for three-bedrooms, according to information from Apartments.com. Short-term leasing is also available, according to the asset’s website.

In October 2019, it was reported that Chernawsky, a local Chicago-area entrepreneur and investor, and the co-founder and CEO of auto warranty firm Endurance Warranty Services, was said to have bought another property in the region. He picked up the 364-unit Skyridge Club Apartments at 1395 Skyridge Drive in Crystal Lake, Ill., from Strategic Properties of North America, according to a report from Crain’s Chicago Business.

The report said that Chernawsky moved into real estate investment with his father after he sold off a stake in his auto warranty business in 2015.