Noah Properties has secured US$62.5 million in financing for the lease-up phase of a recently completed multifamily development in a Chicago suburb. The transaction was facilitated by Walker & Dunlop Investment Partners (WDIP), who provided the loan for the 945 Nanusha Residences in Buffalo Grove, Illinois. This financing serves to refinance existing construction debt, even before the issuance of the temporary certificate of occupancy (TCO) and thus before the start of the lease-up process.
Negotiations for this transaction were led by Arrow Real Estate Advisors, a team headed by Morris Betesh and Jacob Petrovic. The refinancing was structured to include an interest reserve for the entire lease-up phase. This allows for the coverage of remaining project costs, as well as the settlement of property taxes and insurance expenses, as stated by Arrow.
Structure and Scope of Financing
Jacob Petrovic, a director at Arrow Real Estate Advisors, commented on the speed of the execution: "WDIP executed a pre-TCO take-out that significantly reduces Noah's cost of capital, carries the property on a single loan through stabilisation, and closed within approximately 30 days of engagement." This efficient processing underlines the flexibility and commitment of the parties involved.
Morris Betesh, founder and managing partner at Arrow, highlighted the strategic importance of the location. He emphasised that Chicago and the Midwest represent a "central growth priority" for the brokerage firm this year. The 945 Nanusha Residences exemplify this belief by offering "high-quality product in deep suburban submarkets".
Property Details and Amenities
The 945 Nanusha Residences are located at 945 North Old Arlington Heights Road, approximately 30 miles northwest of downtown Chicago. The complex comprises 223 apartments across a gross floor area of 231,970 square feet. Residents benefit from a range of extensive amenities that significantly enhance living comfort.
- —A landscaped courtyard
- —A swimming pool and cabanas
- —An outdoor barbecue area
- —A rooftop terrace lounge with fire pit
- —A modern fitness centre
- —Electric vehicle charging stations
Neither WDIP nor Noah Properties were available for immediate comment when contacted.
