Red Oak Capital Holdings, LLC has recently funded a $4.25-million bridge loan for a multi-tenant industrial property located in Chicago, Illinois. The purpose of the funds is to refinance and improve the class “B” facility situated at 3850 W. Cortland Street in the North Chicago industrial submarket.
The loan was carefully evaluated under Red Oak’s Opportunistic Bridge Program and structured with a note rate of 10.50 percent for a term of 12 months with two options for renewal every six months. This financing represents approximately 66% of the asset’s value when stabilized at $6.40 million.
Sitting on an expansive 1-acre site, this building spans over an impressive area measuring up to approximately 92,511 square feet and was originally constructed back in1960 before undergoing renovations last year in2019.The property also boasts office space totaling up to37,249 square feet.
In line with their goal to pay off matured loans,the borrower acquired this asset backin2019for roughly$3 .7million using partofthe debt proceeds fromthis recent funding.The sponsor behind this project is none other than Michael Goldstein fromChicago Property Investors LLC who has been actively involvedin purchasing large single-tenant buildingsand converting them into multi-tenant spacesoverthe past four decades.This latest development by Red Oak Capital will surely bring about positive changes withinthis thriving industry as it continues its missionto connect investorswith lucrative opportunities across various markets nationwide.
