ACRES Capital Originates ~$12M Loan to Revitalize 106,000-SF Office Property
Office PropertyMARCH 23, 2020
DEERFIELD, IL (March 23, 2020) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, is pleased to announce that it has originated an approximately $12 million loan to fund the renovation and lease-up of Ten Parkway North, a three-story office property located at 10 Parkway North Boulevard in Deerfield, Illinois. The loan is provided to Core Acquisitions (the “Sponsor”), a Chicago-based commercial real estate investment firm specializing in the development and redevelopment of office and retail properties.
“Ten Parkway North’s location in the Parkway North Center, one of the premier office parks in the northern Chicago suburbs, made this an ideal origination opportunity,” said ACRES President and Chief Executive Officer Mark Fogel. “This loan will allow Sponsor Core Acquisitions, which has extensive expertise in Chicago and its surrounding areas, to refinance the debt on the building while making significant capital improvements to its tenant and common spaces. We are confident that the project’s timeline and below market rents will allow CORE to capitalize on a strong market.”
Ten Parkway North can accommodate a wide variety of tenants and is one of just four multi-tenant buildings in the Deerfield market that offers large, contiguous space between 36,000 and 90,000 square feet. The Sponsor plans to subdivide several spaces in the building to create smaller, speculative suites for tenants, a competitive advantage due to the rarity of small office space in the market. Common area renovations will include an updated lobby, tenant lounge, conference center, corridors, bathrooms, elevators and patios, and will modernize the property to bring it in line with the other buildings in the complex. The Sponsor selected ACRES for the loan due to its comprehensive and adaptable financing package and surety of execution.
Adam Firsel, Managing Principal of Core Acquisitions, stated, “ACRES Capital provided us a complete financing solution for our repositioning business plan on our class A office building in Deerfield, Illinois. ACRES took the time to understand our projections and analysis, and therefore provided a structure that worked for our needs. They were efficient, professional and performed on the loan, even as major, macro-economic disruptions began to crest. We appreciate ACRES as a trusted source of capital and are looking forward to doing more business with them in the near future.”
Deerfield is part of a metropolitan statistical area (MSA) which includes Chicago, Naperville and Arlington Heights. This market benefits from a diverse economic base which features a range of industries including manufacturing, finance, publishing, insurance and food processing. Additionally, the Chicago area is a national distribution hub, accommodating logistics and other tenants with its strong infrastructure and global market access.
The Sponsor has partnered with Principal Jason Simon of Colliers International to orchestrate the lease-up of the property.
About ACRES Capital
ACRES is a balance sheet lender and SEC-registered investment adviser that provides debt capital solutions for the commercial real estate industry on a nationwide platform. ACRES seeks opportunities in the $10 million to $100 million range on stabilized and transitional properties including multifamily, retail, office, hospitality, and industrial. ACRES has originated over $1.5 billion of loans since inception