- What A Canada-based investor group is looking to refinance an upscale Chicago apartment tower
- Why The fixed-rate debt is set to mature in the coming months
- What next The group is looking to line up around $162m (US$118m) of debt
A Canada-based investor group is looking to line up around $162m (US$118m) of debt to refinance an upscale apartment tower in Chicago.
The collateral is Coast at Lakeshore East, a 515-unit building overlooking the Chicago River. The owner, a joint venture between Morguard and Healthcare of Ontario Pension Plan, is in talks about the new loan via advisor CBRE.
The 46-story building was completed in 2013 by Magellan Development and JPMorgan Asset Management. The duo sold it to Morguard, a Mississauga-based REIT, in July 2017 for US$222.5 million, or US$432,000/unit. A few months later, Morguard sold a 49% stake to Healthcare of Ontario for US$50.7 million.
The stake sale to the pension system included the assumption of part of a US$122.5m loan that Morguard used to finance its acquisition of the building. That fixed-rate debt, originated by an unidentified lender, has a 3.5% coupon and a term of eight years. It’s set to mature in the coming months.
Units at the property range from studios to three bedrooms, with listed rents running from US$2,425 to US$6,145. They have floor-to-ceiling windows, quartz counters, washer/dryers and views of the Chicago skyline, Lake Michigan and the river. Amenities include a heated pool, a fitness center, lounges and grills.
The LEED silver-designated tower also has nearly 18,000 sq ft of street-level retail space and a garage with 272 spaces.
Coast at Lakeshore East is at 345 East Wacker Drive, in Chicago’s Central Loop neighborhood. It’s part of a 28-acre, master-planned development at the mouth of the Chicago River that locally based Magellan has been building out for two decades via various partnerships.
The campus, known as Lakeshore East, has more than a dozen properties, mostly residential buildings with a few smaller retail and hotel components. It ultimately is set to comprise 5,000 condominiums and apartments, 1,500 hotel rooms, a school and some retail space.
