Arrow Real Estate Advisors has arranged a $14.2 million refinancing for The Ash, a newly delivered 40-unit multifamily property in Chicago’s Wicker Park neighborhood. The loan was secured while the asset remains in lease-up, with occupancy already above 70 percent at the time of financing. The performance suggests solid renter demand for new multifamily product in one of Chicago’s more competitive rental submarkets.
The Ash is positioned on the edge of Chicago’s Bucktown and Wicker Park neighborhoods and is designed as a luxury offering with a mix of one- and two-bedroom units. The location places residents within a well-established urban residential corridor that has been the focus of significant investment and tenant interest in recent years. While the property is still stabilizing, current occupancy levels indicate meaningful progress toward full lease-up.
A key component of the business plan is a 30-year tax abatement secured through the City’s Affordable Requirements Ordinance program. This long-term tax relief is expected to support cash flow durability and contribute to the asset’s path to stabilization over an extended hold period. The abatement directly reduces the property’s operating expense burden, which can strengthen coverage metrics for the new loan.
Arrow Real Estate Advisors structured the financing with Associated Bank. According to the firm, the execution provided attractive pricing along with a future rate step-down feature that will take effect once the property meets defined stabilization benchmarks. The structure is intended to align borrowing costs with the property’s lease-up trajectory and anticipated income growth as occupancy increases.
The Arrow Real Estate Advisors team for the transaction consisted of Founder and Managing Partner Morris Betesh, Senior Vice President Omar Ferreira and Associate Jacob Petrovic. The trio arranged the refinance on behalf of Noah Properties. Their mandate focused on locking in favorable debt while the asset was still in the process of leasing, leveraging both current performance and the value of the long-term tax abatement.
The refinancing reflects current lender appetite for newer, well-located multifamily properties in infill Chicago neighborhoods, particularly when paired with municipal tax incentive programs. For Noah Properties, the new loan provides a capital structure intended to carry The Ash through the remainder of its lease-up period and into long-term stabilization under the existing tax-advantaged framework.
