BWE has arranged a $38.92 million refinancing for a large condominium community in Chicago’s Bronzeville neighborhood, providing new financing for a majority of the property’s homes. The loan recapitalizes 194 units at Woodland Park by the Lake, a 240-unit, gated residential condominium complex located at 3423 S Cottage Grove Avenue in Chicago, Illinois.
The financing was secured on behalf of a sponsorship group that operates as a joint venture between a Chicago-based property management firm and a Chicago-based investor group. The joint venture entered the asset in 2019 by acquiring 170 units through a fractured condominium transaction, and in the years since, it has expanded its position by purchasing additional units within the community. Alongside increasing its ownership share, the venture has carried out substantial renovations on the homes it controls, modernizing and upgrading the units included in the business plan.
As the sponsor has executed its strategy, the property’s performance has improved and occupancy has stabilized, positioning the asset for new long-term financing. The latest refinance encompasses 194 of the community’s 240 total units, allowing the joint venture to lock in fresh debt capital against its renovated and stabilized portion of the condo inventory while maintaining flexibility to continue acquiring remaining units over time.
Ryan Morris, vice president in BWE’s Chicago office, and Max Miller, an analyst in the same office, originated the loan for the borrower. The five-year financing was executed through Freddie Mac, providing agency debt on the stabilized units. According to Morris, the combination of the property’s recent stabilization and the strength of the Chicago rental market made this an appropriate moment to refinance, supporting the sponsor’s strategy of ongoing unit acquisition and renovation within the community.
Woodland Park by the Lake spans approximately seven acres and is configured as a gated residential enclave within Bronzeville. The community’s scale, with 240 condominium units, and its controlled access setting provide a platform for the sponsor’s long-term investment approach. With the new Freddie Mac loan in place, the joint venture has secured medium-term agency financing on the majority of its current holdings at the property, while retaining the ability to pursue additional unit acquisitions and further renovation activity within the same complex.
