Origin Investments, CEDARst Companies Refinance Multifamily Community in Qualified Opportunity Zone
Multifamily investment sponsor Origin Investments and developer CEDARst Companies, its joint venture partner, have refinanced The Rosie multifamily community with a nearly $39.2 million loan from Bridge Debt Strategies.
The Rosie, located in the 1400 block of South Blue Island Avenue in Chicago, is a recently constructed 202-unit community located just north of the Pilsen neighborhood in an opportunity zone. The property is 10 minutes from downtown and within walking distance of the University of Chicago, the Illinois Medical District, Thalia Hall, and restaurants along 18th Street.
The property is part of Origin’s initial qualified opportunity zone fund investments. Origin is now raising funds for its third qualified opportunity zone fund. It announced the close of Origin Qualified Opportunity Zone Fund II in May 2023 after raising more than $300 million. This followed raising more than $264 million for Origin Qualified Opportunity Zone Fund I.
The Rosie is 95% leased and has a full roster of amenities that include a fitness center, co-working spaces, lounge, and a rooftop pool with skyline views. One of the unique features of some units is the inclusion of robotic furniture to maximize unit space, e.g., a bed that hides under a closet, office and couch. The building also includes two retail spaces totaling 7,000 square feet.
The loan has a three-year term. The partnership executed an interest rate cap at closing, which effectively fixed the interest rate. A tenant improvement allowance was included in the loan amount to help finance future retail leases at the property.
While this is CEDARst’s first transaction with Bridge Debt Strategies, it expands upon a five-year relationship with Bridge Investment Group. That relationship includes three deals with a total equity of $90 million. Two of the assets are in in San Diego and Vancouver, Wash., respectively, and a third is underway in Las Vegas. The projects total $278 million in costs.
CEDARst manages a portfolio of nearly 7,500 units across eight states. Although the majority are in Chicago, a recent focus has been placed on the West Coast and south Florida.
Earlier this summer, Origin Investments launched Origin Exchange for direct investment by retail investors, as well as registered investment advisers that allocate their clients’ capital to Origin offerings.
Founded in 2007, Origin Investments is a private real estate manager that helps high-net-worth investors, family offices, and registered investment advisers grow and preserve wealth by providing tax-efficient real estate solutions through private funds. Origin Investments. has executed more than $3.5 billion in real estate transactions.
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