Newmark Knight Frank Multifamily (NKF) is pleased to announce the financing of the acquisition of Cityfront Place in Chicago, IL. The property was acquired by a joint venture between Strategic Properties of North America (“SPNA”) and Mirae Asset Daewoo with NKF acting as advisors to the joint venture partners and on the debt financing.
Executive Managing Director Henry Stimler and Managing Director Charles Han worked with Matt Mense and Dan Sarsfield to deliver 5-year Freddie Mac fixed-rate, full-term interest-only debt for $102,500,000 at three percent.
SPNA identified this property as a prime candidate for its value-add program and approached NKF Capital Markets Strategies Group headed by President Anthony Orso to source both the debt and equity. The NKF Capital Markets Strategies Group also introduced SPNA to Mirae Asset Daewoo, a top-tier investment firm from South Korea, to form a joint venture.
“This transaction showcases our ability to deliver an exceptional execution in one of the most volatile and disruptive markets,” said Stimler. “NKF Capital Markets Strategies group also introduced Mirae Asset Daewoo as a new player to the multifamily market and served as advisors to the buyers on complex negotiation and partnership formation that required significant cross-team collaboration.”
The joint venture was drawn to the property’s prime location near healthcare and educational institutions with a strong workforce making it an excellent investment while mitigating any potential market disruption. The new owners are planning several property upgrades, enlisting Lincoln Properties to manage the asset.
“This transaction is an important victory for the new joint venture given the property’s planned high-quality improvements and its coveted location near potential employers, neighborhood amenities and landmarks,” said Han. “The timing for the purchase is incredibly fortunate for the new partnership as we were able to secure exceptionally favorable debt terms for this coveted multifamily investment.”
Cityfront Place is a Class-A, 39-story 480-unit waterfront high rise located along the Chicago River offering scenic views of Lake Michigan. The property is near Northwestern Memorial Hospital, the University of Chicago Medicine and NBC Studios with a local workforce that consistently drives the asset’s high occupancy rate. Cityfront Place’s location in the Streeterville submarket of Downtown Chicago adds to its desirability, proximate to eclectic bars, restaurants, retailers and entertainment venues.
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 18,000 professionals operate from approximately 480 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.