Eastern Union secures $125.25 million to finance acquisition of 1,115-unit The Pavilion in Chicago

Chicago, IL Eastern Union arranged a $125.25 million loan to finance the acquisition of The Pavilion, a 15-story, 1,115-unit multifamily high-rise located at 5441 N. East River Rd. in the O’Hare neighborhood on the city’s far-northwest side.

The transaction is believed to be the largest apartment building sale in the city on a year-to-date basis.

The loan for the well-known, five-building complex was secured by Eastern Union senior managing director Michael Muller with support from commercial loan analyst Mike Orlik.

Situated on an 18.1-acre parcel, The Pavilion has a gross building area of 1,149,055 s/f and a net rentable area of 886,137 s/f. It was built between 1968 and 1972. With 1,367 parking spaces, the property’s amenities include a club building, swimming pool, spa, sauna, fitness center, and barbecue area. The property was 96% occupied at the time of closing.

The borrower was Chicago-based R.I.G. Capital and the seller was Brookfield Asset Management. The financing was carried out as an agency execution through managing director Stephen York of Arbor Realty Trust.

“With our knowledge of the market, we were able to provide our client competitive terms and seamless execution despite a volatile environment. We wish our client much success with this asset,” said Muller.

At a sale price of $167 million, the transaction represented a 75% loan-to-cost ratio. Payments will be based on a 30-year amortization.

Muller noted that this transaction represented the first time that the property had traded hands in several decades.