CHICAGO–(COMMERCIAL THREAD) –Asia Capital Real Estate (ACRE), a global private equity and real estate debt firm, today announced it has entered into a $ 51.5 million loan to support the refinancing and redevelopment of The Duncan, a multi-building luxury community in the neighborhood Chicago’s West Loop / Fulton Market.
Issued through ACRE’s “ACRE Credit” debt fund, the loan will help refinance the 260 unit property owned by Chicago developer, owner and institutional operator CEDARst. The 2.5-year loan term provided by ACRE includes two one-year extension options and has a loan-to-value ratio of 75.8%.
“Despite the many challenges the industry has faced over the past year due to COVID-19, The Duncan’s strong performance and location during the pandemic is testament to CEADARst’s ability to deliver high quality developments. and the resilience of the West / Fulton Loop. sub-market ‘, said Daniel Jacobs, head of creation of ACRE. “We are proud to grant this loan and look forward to a long and productive partnership in the years to come.
Located at 1515 West Monroe St., The Duncan consists of two multi-level buildings – one four-story and another six-story connected by the second floor. The Duncan preserves its historic charm, providing tenants with architectural features that aren’t too expensive to replicate in new construction, while also introducing modern amenities. The mixed-use community includes 8,350 square feet of retail, coworking space, a cocktail bar, and a fitness center. The large hall will be shared with the FROTH Café, the reception concept of CEDARst managed by The Heritage Group. Recreational facilities will include basketball and volleyball courts, an indoor running track, a wet / dry sauna, an indoor swimming pool and a gym with a boxing ring.
The buildings, originally constructed in the early 1900s, have recently been reallocated in two phases – 150 units were commissioned in July 2020 and the remaining 110 units were delivered in October 2020. The property also benefits from its location in the growing West Loop neighborhood, home to many Fortune 500 companies, including the headquarters of major corporations Google, McDonald’s and Mondelez. The West Loop / Fulton Market area is booming with retail, a thriving restaurant scene, and vibrant nightlife, making it one of the area’s most demanded neighborhoods. As a major foodie destination, West Loop / Fulton Market is home to several Michelin star restaurants and celebrity chef restaurants.
Through a series of equity and debt funds, ACRE manages more than $ 1.8 billion in assets in the form of private real estate investments and loans. The company specializes in value-added multi-family opportunities and invests in affordable housing workforce and assets in strategic growth markets. ACRE’s unique approach to managing its diverse portfolio of multi-family properties includes an intentional focus on creating added value for residents that extends beyond the four walls of their homes. By creating a sense of community among residents through social impact investments and sustainable green measures, ACRE effectively improves tenant retention and generates stable, cash-generating properties.
About Asia Capital Real Estate (ACRE)
Founded in 2011, Asia Capital Real Estate (ACRE) is a global real estate private equity firm that manages institutional investor and family office capital through a series of private equity and debt funds and currently manages over $ 1.8 billion in assets under management. Since its inception, ACRE’s acquisition, development and lending efforts have focused on 22,000 units across 78 properties in 33 cities. ACRE’s strategies focus on direct investments in real estate and credit and are focused on high growth markets in the United States, with additional properties currently under development in South East Asia and the United Kingdom . ACRE manages a global portfolio of multi-family housing with offices in Atlanta, New York and Singapore.
CEDARst applies a vertically integrated approach to the development of residential assets in the United States. CEDARst has been a pioneer in the development of multi-family micro-units in Chicago, identifying unmet demand for high-quality, affordable apartments. CEDARst markets its entire portfolio under a single brand: FLATS®. All APARTMENTS® The properties offer a cohesive resident experience, with carefully designed, hospitality-focused and community-focused spaces that set them apart from the competition.