Knighthead Funding has originated a $32 million refinancing loan for Cerca, a newly built multifamily community in downtown Glenview, Illinois. The financing was provided to The Drake Group, the developer behind the 62-unit property located in Chicago’s North Shore corridor.
The new loan is being used to replace an existing construction facility on the asset. In addition to paying off that prior loan, proceeds are allocated to retire the property’s preferred equity investment, simplifying the capital stack now that the project has reached completion.
JLL advised The Drake Group on the transaction. A capital markets team comprising Daniel Gillard, Philip Galligan, Michael Gurwin, and Ryan Planek represented the borrower in arranging and negotiating the refinancing. On the lender side, Knighthead’s effort was led by Jonathan Daniel, Peter Illuzzi, and Joseph Marraccini, who oversaw the origination and structuring of the loan.
Cerca adds 62 residential units to the Glenview rental market, contributing new Class A inventory to the village’s downtown area. The property is described as a luxury multifamily community with a strong emphasis on design and amenities, positioning it as a high-end option within the local apartment stock.
The asset’s location is a central component of the business plan. Situated in the heart of Glenview, Cerca benefits from immediate access to the Glenview Metra Station, providing commuter rail connectivity into the broader Chicago region. The property is also less than a 20-minute drive from O’Hare International Airport, enhancing its appeal to residents who travel frequently or work near the airport or along major regional corridors.
In addition to its residential component, Cerca incorporates a ground-floor retail element totaling 6,886 square feet. This street-level space is designed to activate the frontage and provide on-site retail conveniences for residents and the surrounding community, integrating the project more fully into Glenview’s downtown environment.
Commenting on the transaction, Knighthead’s Jonathan Daniel noted that Cerca represents a strong addition to Glenview’s residential landscape and highlighted the lender’s objective of delivering a flexible refinancing structure tailored to a best-in-class property. The recapitalization effectively transitions the project from construction financing to longer-term debt while enabling The Drake Group to conclude the preferred equity position associated with the development phase.
