Draper and Kramer arrange $114 million loans for Chicago communities
Tandem development landed a pair of loans to refinance an existing community and fund the construction of a new multi-family project in Chicago. Draper and Kramer Inc. arranged the $114 million in construction and refinancing loans, which were provided by the US Department of Housing and Urban Development.
The approximately $114 million in funding was split between two projects, where $58.4 million was a construction loan for Tandem Development’s 18-story mixed-use multi-family project, and the $55.6 million remaining dollars were for refinancing a construction loan for Tandem Development’s 23-story project. mixed-use community. Draper and Kramer’s Matt Wurtzebach led the team that arranged the financing.
Tandem Development is currently working on 1044 W. Van Buren in Chicago’s popular West Loop neighborhood. The developer began construction on the multi-family project in April and is expected to complete it in the second quarter of 2023. The project will receive assistance from HUD’s 221(d)(4) program which offered a 40-year loan term with amortization over 40 years at 78% loan-to-cost.
The development is expected to offer 196 units and common amenities, including a fitness center, coworking lounge, sky lounge, game room and terrace with fire pits and grilling stations. Tandem Development is also building 1044 W. Van Buren with 78 on-site parking spaces, 143 bicycle parking spaces and 1,775 square feet of retail space on the first floor.
REFINANCING THROUGH HUD’S 223(f) PROGRAM
Draper and Kramer also arranged a non-recourse construction loan refinance through HUD’s 223(f) program, which is typically used by affordable housing projects, for Tandem Development’s Avenir apartments. Wurtzebach arranged the 35-year term loan with a 35-year amortization, adding in prepared remarks that the HUD program can also provide competitive fixed-rate financing for properties at market rates. According to Yardi Matrix data, the previous construction loan for the community was a $48 million loan from Fifth Third Bank.
Tandem Development completed the 23-story mixed-use community in 2019. Avenir Apartments also has 196 units, but some studios offer Ori robotic furniture that can turn a bedroom into an office or living room with the press of a button. Community amenities include an outdoor pool, gym, party room, show kitchen, coworking lounge, cabanas, fire pits, and grilling stations. The property also includes 83 garage parking spaces and 32,558 square feet of commercial space. The community is 95% occupied.
In addition to Avenir Apartments and its ongoing work at 1044 W. Van Buren, Tandem Development has worked on several other projects in the city. The Chicago-based company does everything from construction and property management to development and architecture. Last year, Tandem Development completed its Avra West Loop project which is one block from 1044 W. Van Buren.