CHICAGO, IL – March 25, 2019 – Berkadia announced today the sale of Tailor Lofts, a 135-room student housing property in Chicago located near the University of Illinois at Chicago (UIC) and Rush University. Managing Director Kevin Larimer and Director Greg Gonzalez of Berkadia’s Student Housing team completed the sale on behalf of Chicago-based Blue Vista Capital Management. Managing Director Ed Kim and Associate Director Jie Lee of Berkadia’s Irvine office arranged the financing on behalf of Orange County-based NB Private Capital (NBPC). The deal closed on February 21.
The ten-year loan represents a 65 percent loan-to-value, carries a competitive interest rate and features a 5-year interest only period.
“In 2009, Blue Vista transformed this vintage tailoring factory into a modern, purpose-built student housing community offering well designed, urban lofts with fully furnished units. They were an early mover to this dynamic submarket in Chicago. UIC and Rush enroll more than 34,000 students and within a few blocks are the global headquarters for McDonalds and the Midwest headquarters for Google,” said Larimer. “As a result, occupancy has been consistently high, averaging over 97 percent since renovation, and is 100 percent for the 2018/2019 academic year. Because of the tight market occupancy and consistently growing rents, there is an opportunity to create additional value through strategic in-unit upgrades as well as common area renovations, making this one of the best opportunities in the Chicago student housing market.”
Student housing sales reached a new peak of $10.5 billion in 2018, up 7.6 percent from the previous high in 2016.
“NBPC has a disciplined approach to student housing opportunities, focusing on core pedestrian properties that have demonstrated solid performance anchored by the stability of a major university,” added Lee. “Tailor Lofts fits this bill and with a competitive loan in place, NBPC is primed to increase cash flow and add value.”
Located at 315 South Peoria Street, Tailor Lofts is within walking distance to both Rush University and UIC’s main campus. Situated in the West Loop neighborhood of the city, it offers convenient access to a plethora of retail, entertainment and dining venues, as well as public transit options. It features studio, two and four-bedroom floor plans with fully furnished interiors, complimentary cable and Wi-Fi, a 24-hour onsite fitness center, a game room, a study lounge and a computer lab.