1 Austin Neighborhood Chicago Acquistiion Loan Larrge Affordable Housing Project
Austin, Chicago
Bridge Loan Affordable Rentals/300 Unit SRO – Chicago, Illinois
Overview:
Client: An experienced real estate operator specializing in affordable multi-family rentals.
Location: Austin neighborhood, Chicago, IL.
Asset: A 300-unit Single Room Occupancy (SRO) property, formerly a YMCA, featuring two basketball gyms, pool and meeting rooms. Purpose: Acquisition loan to stabilize the asset after years of neglect by previous ownership. Challenges: Tight deadline: Close within 14 days or less. Unique asset: Traditional Banks unable to execute due to timing and existing operational and physical challenges at property. Title issues: Over 6 liens on title including banking, mechanical and government liens. Two open court cases including a Foreclosure and City of Chicago Building Violation Court Case and large past due water bill Our Solution: Sherpa Capital Group worked closely with the client to gather and approve appropriate documentation while addressing title issues to secure a clear title commitment. We provided a first mortgage loan to acquire the property within the tight timeframe. Outcome: The loan closed successfully before Thanksgiving, enabling the client to move forward with their plans. The exit strategy involves updating the property and securing a construction loan with a local lender within six months.
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