New York Life Insurance wanted to keep Evanston’s fifth-tallest building long enough to pay down a chunk of its old debt in order to get new financing.
New York Life’s investment division recently took out a $75 million loan against the Park Evanston apartment complex, at 1630 Chicago Avenue in the northern suburb, with PGIM Real Estate serving as the lender, Cook County records show.
The debt package amounts to a 15 percent chop from an $88 million loan that New York Life borrowed against the 24-story, 283-unit property in 2018. New York Life bought it from an affiliate of TIAA for $127 million in 2017.
Neither New York Life nor PGIM returned requests for comment.
It’s the latest instance of a big Chicago-area landlord putting more money into a previous loan in order to get a new financing deal, as interest rate hikes over the past 18 months have cut into borrowers’ pockets. It’s a trend among landlords of nearly all property types.
Earlier this month, the Feil Organization secured a $55 million loan for a Magnificent Mile luxury retail and office mixed-use building at 645 North Michigan Avenue, where the previous debt tied to the asset was $65 million.
As for the Evanston multifamily market, New York Life putting resources into new financing underscores the strength of area demand, where new supply has been limited. The property, built in 1997, includes units from studios to two-bedroom layouts. Monthly rents range from $2,300 to $5,000, online listings show.
Evanston officials in the past year have made moves to restrict new apartments from being built near Park Evanston. Developer Horizon Realty Group’s proposal to build a 15-story housing complex at 1621-31 Chicago Avenue was turned down for being too big, even after it was downsized from an 18-story plan.
Earlier this month, Evanston Alderman Jonathan Nieuwsma said Horizon’s proposal shrinks to 10 stories he thinks it would be approved, news outlet Evanston Now reported. He expects Vermillion Development’s proposed 18-story, $100 million office project for 605 Davis Street to be converted into a residential proposal, which he said he would support.
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