201-942-9089 info@abl1.net

Greg’s Featured Deal in Chicago, Illinois

by | May 8, 2024 | 0 comments

Multifamily Refinance and Renovation in Chicago, Illinois

Greg Dietz, Asset Based Lending’s Vice President of Lending, recently closed a multifamily refinance and renovation in Chicago, Illinois for a first-time borrower and experienced real estate investor.

Greg has known the borrower for 13 years, representing them on land purchases for multifamily acquisitions.

The borrower is a prolific Chicago multifamily developer and operator, and they met when Greg was a commercial real estate broker.

This real estate investor trusted Greg to help scale his real estate business using ABL’s multifamily fix and flip loan program.

The property was purchased for $1.55MM in 2016, with a current as-is value of $2.31MM and $475,676 remaining of the $1.95MM construction budget.  ABL funded a loan of $2.97MM, or 85% of the total project cost.

The borrower swiftly completed the deal, encountering minimal obstacles as the property was nearly 70% complete when the borrower closed with ABL. ABL facilitated a smooth process, and the substantial loan amount was justified by the property’s potential ARV.

The scope of work for the gut renovation of this multi-family luxury property includes several key elements.

The roof will be replaced with rolled rubber modified bitumen, and the exterior will feature a combination of brick and limestone, with custom Schaff windows installed.

Mechanical upgrades encompass electrical, plumbing, and HVAC rough-ins, along with the installation of a new HVAC system and radiant heat on the lower level.

Flooring selections include white oak solid hardwood for common areas, marble for primary bathrooms and powder rooms, and natural stone for all other bathrooms.

The kitchen will boast custom hardwood cabinets, quartz countertops, built-in Thermador appliances, a solid slab backsplash, and an island.

Bathrooms will feature custom hardwood vanities with quartz tops, and master bedrooms 1 and 3 will include standalone acrylic tubs.

Additionally, the renovation will include recessed lighting, solid core interior doors, a fire-rated steel exterior door, and a glass front door for the building.

In Q1 2024, the Chicago housing market is characterized by a balanced dynamic between buyers and sellers.

Although there has been a slight uptick in home sales compared to the previous year, there is a noticeable decrease in available housing inventory which may present obstacles for prospective buyers.

While lack of inventory may present challenges for buyers, increased prices suggest advantages for sellers.

Investors looking to build new construction in the Chicago area could benefit from the balanced dynamics of the market.

With the modest increase of year-over-year home sales, it could translate to ongoing demand for housing in the region, providing a favorable market for new construction.

Furthermore, the rising prices in the market indicate strong appreciation potential for newly built homes.

As property values continue to climb, investors can capitalize on the opportunity to generate significant returns on their new construction projects over time.

Greg has been helping real estate investors with Asset Based Lending since 2023. He previously worked in private equity where he oversaw more than $3 billion in real estate transactions.

He has experience representing buyers and sellers of commercial real estate, which made for a seamless transition into his position at ABL.

To learn more about Asset Based Lending’s New Construction Loans, or to work with Greg on potential real estate investments, get qualified today.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Recent Posts

Join Our Mailing List

Login

Member's Menu