Nebo Sources $3.5MM in Mezzanine Financing for Chicago Adaptive Reuse

Nebo Capital closed a mezzanine loan on a 140,000 SF office building being re-positioned into multifamily. With an excellent location in the Loop, the asset was under-leased, with some Class A tenants leaving in the prior few years. Nebo's client, a Chicago-based investor/developer group, was recently able to obtain the property at a low basis as it was spun out of a large for-sale portfolio. The low basis provided a set of versatile opportunities for this asset. 

The debt terms for both the senior and mezzanine loans were very aggressive, and both lenders were willing to work together to win business with this well-established group. Challenges included low in-place rents, lease roll, and the building's age.

Nebo diligently pursued the market to find the best fit for the deal and identified a mezz lender that understood the opportunity presented by the low basis and the versatility of the product. 

David Blitz and Anton Malyshev worked on this transaction.

With December just around the corner, reach out to Nebo ASAP for assistance on a 2014 close.