CHICAGO--(BUSINESS WIRE)--Asia Capital Real Estate (ACRE), a global real estate private equity and debt firm, today announced it has closed on a $51.5 million loan to support the refinancing and redevelopment of The Duncan, a multi-building luxury community in Chicago’s West Loop/Fulton Market neighborhood.
Issued through ACRE’s debt fund “ACRE Credit”, the loan will aid in the refinancing of the 260-unit property owned by Chicago-based institutional developer, owner and operator CEDARst. The 2.5 year loan term ACRE provided includes two 1-year extension options and carries a Loan-to-Value ratio of 75.8 percent.
“Despite the many challenges the industry faced this past year due to COVID-19, The Duncan’s strong performance and lease-up through the pandemic is a testament to CEADARst’s ability to deliver high-quality developments, and the resilience of the West Loop/Fulton submarket,” said ACRE’s Head of Origination Daniel Jacobs. “We’re proud to deliver this loan and look forward to a long and productive partnership in the years to come.”
Located at 1515 West Monroe St., The Duncan consists of two multi-level buildings – one four-story and another six-story connected by the second floor. The Duncan preserves its historic charm, offering renters architectural features that are not too cost-prohibitive to be replicated by new construction, while introducing modern amenities. The mixed-use community includes 8,350 square feet of retail, a coworking space, a cocktail bar and a fitness center. The grand lobby will be shared with FROTH Café, CEDARst’s hospitality concept managed by The Heritage Group. Recreational amenities will include basketball and volleyball courts, an indoor running track, a wet/dry sauna, an indoor swimming pool and a gym featuring a boxing ring.
The buildings, originally built in the early 1900s, were recently repurposed in two phases – 150 units came online in July 2020 and the remaining 110 units were delivered in October 2020. The property also benefits from its location in the growing West Loop neighborhood, which is home to many Fortune 500 companies, including the headquarters of major corporations Google, McDonald’s and Mondelez. The West Loop/Fulton Market neighborhood is booming with retail, a flourishing restaurant scene and thriving nightlife, making it one of the most in-demand neighborhoods in the area. As a major dining destination, West Loop/Fulton Market is home to multiple Michelin start restaurants and celebrity chef eateries.
Through a series of equity and debt funds, ACRE manages more than $1.8 billion in assets across private real estate investments and loans. The firm specializes in value-add, multifamily opportunities and invests in workforce and affordable housing assets in strategic growth markets. ACRE’s unique approach to managing its diverse portfolio of multifamily properties includes an intentional focus on creating added value for residents that extends beyond the four walls of their homes. By establishing a sense of community among residents through socially impactful investments and sustainable green measures, ACRE effectively improves tenant retention and generates stable, cash-flowing properties.
About Asia Capital Real Estate (ACRE)
Founded in 2011, Asia Capital Real Estate (ACRE) is a global real estate private equity firm managing capital for institutional and family office investors through a series of private equity and debt funds and currently has more than $1.8 billion in assets under management. Since its inception, ACRE’s acquisition, development and lending efforts have spanned 22,000 units across 78 properties in 33 cities. ACRE’s strategies focus on direct real estate equity and credit investments and are concentrated in high growth markets in the United States, with additional properties currently in development in Southeast Asia and the United Kingdom. ACRE manages a global multifamily housing portfolio with offices in Atlanta, New York and Singapore.
CEDARst applies a vertically integrated approach to the development of residential assets throughout the U.S. CEDARst was a pioneer in micro-unit multifamily development in Chicago, identifying an un-met demand for high quality apartments at an approachable price point. CEDARst markets its entire portfolio under a single brand: FLATS®. All FLATS® properties deliver a consistent resident experience, complete with thoughtfully designed, hospitality-driven, and community-oriented spaces, setting it apart from the competition.