CHICAGO, IL – Walker & Dunlop announced that it arranged construction and permanent financing through the United States Department of Housing and Urban Development (HUD) in the amount of $44,685,300 for 30 East Adams in Chicago, Illinois. Built in 1926 and known to locals as the ancient Hartman Building, the historic property is home to the iconic Miller’s Pub in the heart of the Chicago Loop. The loan enables the adaptive reuse of the office building into 176 market rate multifamily units with ground level retail. This is one of many projects intended to restore the Loop’s ancient office buildings as apartment buildings.

Leading Walker & Dunlop’s team, Carolyn McMullen and Kyle Peterson arranged the financing for first-time HUD borrower Cedar Street Companies (“Cedar Street” or the “Developer”). Based in Chicago, the Developer has become well-known throughout the city for successfully converting several similar historic buildings into multifamily projects. 

The Company’s team utilized HUD’s 221(d)(4) program, allowing the Developer to capitalize on savings from the existing historic tax credits. The innovative team also implemented HUD’s green mortgage insurance premium (MIP), making this the first ever mixed-use project to receive such benefits. The fully-amortizing loan allowed the borrower to remove their interest rate risk by locking in the rate on a 40-year term with two years of interest-only payments.

Erik Larson, the Developer’s managing director of finance, remarked, “Walker & Dunlop was instrumental to providing an optimal debt facility to meet Cedar Street’s multiple goals for this project, primarily long-term ownership at a historically low cost of capital. Because of its wealth of contacts and product knowledge, Walker & Dunlop was able to arrange a long-term, very low interest rate product that will allow us to maximize the historic value of this building and deliver once in a lifetime returns to our investors.”

Ms. McMullen, senior vice president of Walker & Dunlop’s FHA Finance group remarked, “This was a complex financing with a lot of moving parts. We were fortunate to be working with a sophisticated and experienced partner in Cedar Street.” She added, “The Chicago HUD office’s direction and commitment to working with Walker & Dunlop was instrumental in our ability to structure and close the complex 221(d)(4) loan in December to meet the borrower’s timing constraints.”

Vice President Mr. Peterson added, “Cedar Street has an uncanny ability to unlock the value of underutilized assets through creative design and finance. Loans for substantial renovation and new construction have become more challenging to procure. Facilitating a relationship with HUD provides Cedar Street access to attractive capital to further enhance their development strategy.”

Once complete, 30 East Adams will include a rooftop deck, fitness center, and a new retail outlet on the ground floor adjacent to McDonalds and Millers Pub, two existing tenants who will continue to occupy their respective spaces. Located next to an L train stop and just blocks from shopping and cultural attractions, the property is a transit-oriented development that is rated as a Walker’s Paradise and Very Bikeable.

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GAINESVILLE, FL – Campus First Student Living  and CF Real Estate Services, announced the acquisition of The Ridge, a 661-bed student living community located less than 1 mile from the University of Florida. This is just the latest addition to the rapidly growing student housing firm. Campus First focuses on student housing acquisitions, development, and property management. The addition of this student housing project brings Campus First’s student portfolio to just over 6,000 beds. The property is located in Gainesville, Florida, within walking distance to the University of Florida, and the new Celebration Pointe and expanded Butler Plaza retail centers.

“The addition of The Ridge to our Campus First portfolio furthers our investment strategy of adding well located student assets in growth markets,” states CF Real Estate Services CEO, Brett Finkelstein.

The Ridge is a premier student property that offers both 2 bedroom/bath apartments and a 4 and 5 bedroom townhome product with large floor plans, garages, granite countertops, stainless steel appliances, subway tile backsplashes, and bed/bath parity. The Ridge was constructed in 2015/2016, with the first units delivered in August 2016. This trophy property has a total of 178 units with 661 beds. The Ridge is unparalleled in the Gainesville market with its first-class amenities, including a 3-room fitness center, large clubhouse, and several study lounges. Outdoor amenities include a massive beach entry pool, 1000+ person pool deck, 25 person hot tub, 20 foot Jumbotron, and the only bone idle river in the Gainesville market.

Campus First is a boutique style acquisition/development and property management firm that focuses on purpose built student housing. Campus First is a division of parent company, CF Real Estate Services, headquartered in Atlanta, GA. Campus First currently owns or manages 6,000+ student beds, while CF Real Estate Services currently owns or manages 25,000 market rate and workforce housing units located throughout the Southeast, Southwest, and Mid-Atlantic regions of the United States.

Renovations and value-add improvements for The Ridge are valued at more than $700,000 and are scheduled to start prior to the 2018/2019 school year. Property renovations will include improvements to the clubhouse and the build-out of new private study areas. Within the fitness center, there are plans to add additional fitness equipment, Fitness on Demand™, and a yoga studio. Within the pool area, there will be new fire pits and game areas. Ownership also plans to upgrade the dog park.

“We are keen to introduce our boutique style management to the Gainesville market. Campus First Student Living will present students an opportunity for an elevated off-campus living experience that they will not receive elsewhere,” states Christopher Feeley, President of Campus First.

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ATLANTA, GA – Resource Apartment REIT III, through its operating partnership, entered into an agreement to buy Tramore Village, a 324-unit apartment community located in Austell, Georgia, a quick-growing submarket of Atlanta.

Built in 1999, the community fronts the highly-trafficked East-West Connector, offering a quick commute to over 300,000 jobs within Atlanta’s expanding economic footprint, as well as access to a flourishing specialty healthcare corridor nearby. More than 5,000 professionals are employed at several medical facilities within a one-mile radius of the property.

Atlanta, one of the largest cities in the Southeast, is a growing information technology and healthcare hub and continues to attract Fortune 500 companies to relocate and expand local operations. The submarket’s advantageous transportation infrastructure has also helped attract large corporations to the community’s surrounding area, including Wellstar, AllState Insurance, and Vonage Solution.

Resource Apartment REIT III is sponsored by Resource Real Estate, a wholly owned subsidiary of Resource America. Resource is an asset management company that specializes in real estate and credit investments. Resource is a wholly owned subsidiary of C-III Capital Partners LLC, a leading real estate investment management and commercial property services company.

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