Rockwell Partners received $ 80.1 million in funding for its suburban Chicago project that required five years of converting from condos to apartments.
Walker & Dunlop arranged the Freddie Mac variable rate loan for Rockwell, a loyal client of the real estate finance company, and the 1,155 home Ellyn Crossing in Glendale Heights, Illinois. The loan offers maximum flexibility through an attractive indexation rate, two years of interest-only payments and a flexible prepayment schedule.
Located at 440 Gregory Ave., Ellyn Crossing is approximately 30 miles from downtown Chicago. The suburban community offers one and two bedroom units in 30 three-story buildings. Units vary in size from 579 to 681 square feet and have open floor plans, patios or balconies, and spacious closets. Facilities at the property include a residents’ pavilion, business center, activity room, fitness center, swimming pool and terrace, tennis court, sand volleyball court , a playground and picnic areas. The property is 86.9% occupied, according to data from Yardi Matrix.
Rockwell has already invested millions of dollars in community renovations, including $ 4.5 million in unit upgrades and $ 1.5 million in renovating common areas to Class B. Rockwell is expected to complete all unit renovations within six to nine months of closure.
MAJOR CONDO DECONVERSION
Before Rockwell took control of Ellyn Crossing, the community was previously known as the Stonegate community. The houses were built in phases between 1973 and 1978 and were partially converted to condos during the US housing bubble.
Rockwell became involved in the project in 2013 when it acquired over 400 units from Stonegate. The investment company continued to acquire the remainder of the units over the next five years before tying all of the units together under the Ellyn Crossing brand. The overall effort has been one of the biggest condo deconversions in the country, according to Rockwell.
Pat Dempsey, senior managing director of Walker & Dunlop, said in prepared remarks that Rockwell had renovated a complicated broken condo project into a quality garden-style apartment community for those looking to live outside the city of Chicago.
While not on the same scale as Stonegate, there have been many other misconversions that have taken place in Chicago’s submarkets. In July, Interra Realty traded the $ 17 million deconversion sale of a 91-unit residential building in Evanston, Illinois. A few months earlier, CBRE had arranged the $ 44 million condominium sale of a Property of 163 units in Chicago.