Crescent Heights takes out $340M loan on NEMA Chicago

The Miami-based developer expects to complete the 76-story tower this fall
July 02, 2019 09:15AM

Crescent Heights co-founder Russell Galbut and NEMA Chicago

Crescent Heights co-founder Russell Galbut and NEMA Chicago

Crescent Heights took out a massive new mortgage on its nearly-completed NEMA Chicago tower.

The Miami-based developer secured a $340 million refinancing on the 800-unit tower from KKR Real Estate Finance Trust, according to Crain’s. It replaces a previous $328 million loan, allowing Crescent Heights to lock in a lower interest rate.

The developer broke ground in 2017 with the backing of a $203 million construction loan from Bank OZK, the small Arkansas-based lender fueling billions of dollars in construction in Florida and Chicago.

Two months after NEMA welcomed its first tenants, the tower at 1210 South Indiana Avenue is about 35 percent leased. Construction is scheduled to finish this fall on the nearly 900-foot tower, the tallest all-residential building in the city.

While it was building NEMA, Crescent Heights cashed out on some of its other South Loop properties, including the 332-unit Lex complex and the 344-unit Park Michigan tower.

Last month, the developer announced it would back the city’s latest condo deconversion bid by buying up the units in the 30-story Astoria Tower in the South Loop.

[Crain’s] — Alex Nitkin