Chicago-based Habitat, a leading national multifamily real estate developer, operator and property manager, has successfully refinanced Columbus Plaza, a 47-story, 534-unit apartment high-rise in downtown Chicago. Habitat and its partners secured a new $72.9 million Freddie Mac loan arranged by Northmarq, plus an additional $29.5 million in new equity from New York-based Torchlight Investors, which joins Habitat as an equity partner in the property.
The refinance replaces a $93 million loan from 2017, which matured in November. The deal was complicated after Columbus Plaza received a higher property tax assessment last fall and by Chicago’s proposed – but ultimately unsuccessful – real estate tax rate increase, which led Habitat’s lender to reduce the loan amount by $6 million. The new loan and capital structure allow Habitat and its partners to plan key renovations and other capital improvements to the property at 233 E. Wacker Drive.
“While some owners facing similar challenges have defaulted, resulting in properties being taken over by lenders, Habitat and its investors took proactive steps to make our lenders whole by successfully executing one of the largest multifamily refinances in Chicago over the past year,” said Matt Fiascone, president of Habitat. “This deal not only ensures continuity of ownership and management of Columbus Plaza but also enables us to move forward with future renovations and improvements that will enhance the living experience for residents while positioning the community for success and strengthening Habitat’s unwavering commitment to the Chicago multifamily market.”
Perched on East Wacker Drive, the building overlooks the Chicago River and offers residents views of Lake Michigan and the surrounding downtown cityscape, easy access to the Chicago Riverwalk and a direct connection to the Chicago Pedway. With a walk score of 99, the building is just steps from a variety of public transit options, top dining destinations and notable Chicago attractions, such as Navy Pier, Millennium Park, the Art Institute and Michigan Avenue. Habitat was the original developer of Columbus Plaza and continues to manage the property.
Founded in 1971, Habitat is a full-service residential real estate company specializing in property management, acquisitions and development. One of the largest residential property developers and managers in the United States, with over $3 billion in assets and more than 16,000 units under management across six states, the company’s portfolio spans a range of property types, from mid- and high-rise condominium, apartment and adaptive reuse developments to senior and affordable housing communities. Headquartered in Chicago, with more than 800 employees throughout the United States, Habitat is dedicated to improving the communities it serves through innovation and a commitment to excellence.
