Broadmark Realty Lends $32M on Chicago-Area Townhome Development
Publicly-traded mortgage REIT Broadmark Realty Capital has extended $32 million in construction debt financing to Melrose State Capital for a 68-unit townhome project in Northbrook, Ill., Commercial Observer has learned.
The financing will help fund the construction of Melrose’s Gateway Northbrook townhome development at 1281 Shermer Road in Northbrook, a suburban town about 25 miles north of downtown Chicago.
Gateway Northbrook sits on nearly 5.4 acres and will have 12 townhome buildings when it’s completed. It’s currently “midway through construction,” having completed and sold five units, according to the firm. This fresh financing from Broadmark will allow Melrose to complete 17 more units, with more funds to be made available for the remaining 44 units once the developer puts a bow on the first 17 and sells each of them.
The three-bedroom units will range from around 2,180 to 2,740 square feet and they will feature two-car attached garages, first-floor “flex space” and select layouts will have a private rooftop deck, according to property brochure.
“As the nation continues to emerge from the pandemic, the U.S. housing market shows no sign of slowing down,” said Broadmark President and CEO Jeff Pyatt, adding that the firm committed to engaging in lending opportunities on “well-located projects backed by high-quality borrowers in an effort to meet the elevated demand for housing in our target markets. As a reliable and efficient lender with a strong balance sheet, our pipeline continues to grow as we evaluate new opportunities.”
Broadmark, a mortgage real estate investment trust (REIT) that specializes in hard money loans on construction projects, was founded in 2010. It went public in 2019 via a merger with special purpose acquisition company (SPAC), Trinity Merger Corp.
The Gateway Northbrook loan was a deal Broadmark completed in the first quarter. The property is surrounded by schools, medical facilities, shopping and dining and park space — it’s just a couple minutes away from the Chicago Botanic Garden and the Skokie Lagoons. It’s location puts it next door to a couple shopping centers, including the Northbrook Shopping Plaza and the Meadow Shopping Plaza Shopping Center, which includes a Dollar Tree. And it’s just several blocks away from two, larger shopping centers in the Deerbrook Shopping Center and Northbrook Court.