Eastern Union has arranged a $125.25 million loan to finance the acquisition of The Pavilion, a 15-story, 1,115-unit multifamily high-rise located at 5441 N. East River Road in the O’Hare neighborhood on Chicago’s far-northwest side. The transaction is believed to be the largest apartment building sale in Chicago year to date.
The loan for the well-known, five-building complex was secured by Eastern Union senior managing director Michael Muller with support from commercial loan analyst Mike Orlik.
Situated on an 18.1-acre parcel, The Pavilion has a gross building area of 1,149,055 square feet and a net rentable area of 886,137 square feet. It was built between 1968 and 1972. With 1,367 parking spaces, the property’s amenities include a club building, swimming pool, spa, sauna, fitness center and barbecue area. The property was 96% occupied at the time of closing.
The borrower was Chicago-based R.I.G. Capital and the seller was Brookfield Asset Management. The financing was carried out as an agency execution through managing director Stephen York of Arbor Realty Trust of Uniondale, N.Y.
“With our knowledge of the market, we were able to provide our client competitive terms and seamless execution despite a volatile environment,” Muller said, noting that this transaction represented the first time that the property had traded hands in several decades.
At a sale price of $167 million, the transaction represented a 75% loan-to-cost ratio. Payments will be based on a 30-year amortization.
