Red Oak Capital Holdings, LLC has provided a $4.25-million bridge loan for a multi-tenant industrial property in Chicago, Illinois. The funds will be used to refinance and upgrade the class “B” facility at 3850 W. Cortland Street in the North Chicago industrial submarket.
The loan was underwritten under Red Oak’s Opportunistic Bridge Program. The debt for 3850 W. Cortland St. was structured with a note rate of 10.50 percent and a 12-month term with two 6-month renewal options. The financing represents 66.41 percent of the asset’s “As-Stabilized” value of $6.40 million.
Situated on a 1.1-acre site, the 92,511-square-foot building was built in 1960 and last renovated in 2019. The property contains 37,249 square feet of office space.
The borrower acquired the asset in 2019 for nearly $3.7 million, and plans to use part of the debt proceeds to pay off a matured loan. The sponsor, Michael Goldstein of Chicago Property Investors LLC, has a 40-year history of purchasing large single-tenant buildings and converting them into multi-tenant spaces.