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NGKF Capital Markets has closed on the acquisition financing for three downtown Chicago office and retail properties, and one suburban retail center, for a combined value of approximately $53 million.
Senior Managing Director Ben Greazel arranged for $22 million in acquisition financing from a national life insurance company for Danada Square East, a 202,036-square-foot, grocery-anchored retail center located at Butterfield and Naperville Roads in Wheaton, Ill. At closing, the center was 96% occupied, with the largest tenant, Dominick’s, occupying 77,155 square feet. Other anchor tenants include Petco and MC Sports. The borrower, a Chicago-based institutional investor, acquired the center for $32 million from CBRE Global Investors, which was acting as an asset manager of the property for the Orange County (Calif.) Employees Retirement System. The five-year, non-recourse loan includes two years of interest-only payments followed by a 25-year amortization schedule priced at L+375.
Downtown, Mr. Greazel arranged $11.7 million in acquisition financing from a national life insurance company for Belden Centre, a 52,806-square-foot, mixed-use retail office property and 76 parking spaces at 2301-15 N. Clark St. At closing, the center was 100% occupied, with the largest tenant, Little GEMS International Preschool, occupying 32,250 square feet on a long-term lease. The borrower, a Chicago-based institutional investor, acquired the center for $18 million from a joint venture of local investors. The five-year, non-recourse loan includes one year of interest-only payments followed by a 30-year amortization schedule priced at 3.80% fixed.
Mr. Greazel also arranged $7.8 million in acquisition financing from a Chicago-based bank for Clybourn Galleria, a 25,054-square-foot retail center located at 1845 N. Clybourn in the Lincoln Park neighborhood. At closing, the center was 94% leased to a diverse mix of tenants, including Ann Taylor LOFT, Joseph A. Bank, Gymboree, James & Sons Jewelers, Massage Envy and Back to Bed. The borrower, a Chicago-based institutional investor, acquired the center for $11.75 million from Greenstreet Real Estate Partners, LP. The three-year, non-recourse interest only loan is priced at a fixed rate of 5.00%.
Senior Managing Director Adam Levinson arranged $11.4 million in acquisition and reposition financing from a Chicago-based bridge lender for a seven-story, 90,000-square-foot loft office building located at 1165 N. Clark Street. The building’s lower-level retail space is leased to CVS Pharmacy, while a mix of smaller tenants occupy approximately half of the property’s 75,000 square feet of office space. The borrower, a Chicago-based private equity real estate investment firm, acquired the building for $11.5 million from an affiliate of Chicago-based Sandz Development Co. The three-year, non-recourse interest only loan is priced at Libor + 5.75% and has two 12-month extension options. The new owner plans to spend $2-3 million renovating the existing office space as well as building out one to two stories of additional retail space on the existing parking lot.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank (NGKF) is one of the world’s leading commercial real estate advisory firms. Together with its affiliates and London-based partner Knight Frank, NGKF employs more than 11,000 professionals, operating from more than 340 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. Its integrated services platform includes leasing advisory, global corporate services, investment sales and capital markets, consulting, program and project management, property and facilities management, and valuation services. A major force in the real estate marketplace, NGKF serves the local and global property requirements of tenants, landlords, investors and developers worldwide. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the wholesale financial and real estate markets. For further information, visit www.bgcpartners.com.