Northmarq’s Chicago office structures $46.5 million refinance for a 448-unit deed-restricted affordable housing community

CHICAGO (Sept. 7, 2023) — Northmarq, the largest privately-owned provider and servicer of commercial real estate debt and equity, announced today that it arranged $46,497,000 in permanent debt to refinance Long Grove House in Chicago’s South Loop neighborhood. The Northmarq team was led by Managing Directors Sue Blumberg and Kevin McCarthy with key analyst support from Alex Czachor. Northmarq worked exclusively on behalf of the sponsor, The Habitat Company, to secure 10-year, full-term interest only financing through Fannie Mae for the 448-unit affordable housing community.

“The transaction was hugely competitive between Fannie Mae and Freddie Mac,” said Blumberg and McCarthy. “Fannie Mae provided a more competitive interest rate in addition to higher proceeds in order to win the deal for this long-term client.”

The property is situated in the South Loop neighborhood of Chicago nestled between Lake Shore Drive and Chinatown, just blocks from countless restaurants concentrated on Cermak Road, Michigan Avenue, and Archer Avenue. The area has undergone a significant transformation in recent years as new developments such as the $50 million Cermak-McCormick Place Green Line CTA “L” station and the Wintrust Arena at McCormick Square (fka DePaul Arena) continue to come online.

“Long Grove House has been a fixture of Chicago’s South Loop neighborhood for more than 50 years and a place that thousands of local residents have called home,” said Habitat President Matt Fiascone. “We are thankful to the Northmarq team for their diligence and creativity in securing a strong refinance structure in a challenging market that will help ensure the viability of this important community for years to come.”

Long Grove House is a 30-story mixed-use affordable multifamily community offering 448 affordable units governed by a HAP contract for Section 8 housing assistance and a LIHPRHA agreement for tenants below 50% of AMI. The sponsor completed an extensive renovation project in 2013 and recently renovated 100% of the units this year. Residents enjoy beautiful views of the lake, Navy Pier and the downtown Chicago skyline. Amenities at the property include an on-site leasing office, fitness center, daycare, playground, common laundry, gated access and a conference room.