Georgetown Company Secures Chicago Multifamily Refinancing

Georgetown Company has locked in $113.8 million in refinancing for its 34-story apartment building in Chicago’s West Loop.

The New York developer, headed by CEO Adam Flatto, secured a seven-year, fixed-rate Freddie Mac loan for the 496-unit tower at 365 North Halsted Street, Crain’s reported. The loan pencils out to $229,400 per unit.

The deal was brokered by JLL’s Danny Kaufman, Medina Spiodic and Rebecca Brielmaier.

The financing replaces a previous Freddie Mac-backed loan that the company used to buy the building for $214 million ($431,500 per unit) in 2014. The previous loan was paid off with the refinancing, providing the firm with more favorable terms.

The loan’s interest rate is just under 5 percent, according to property records

The refinancing comes as the demand for rental properties is increasing, particularly in downtown Chicago. Fewer apartment developments are slated to come online this year, which is likely to push rents higher in the coming years.

Forecasts project rent growth of up to 5 percent for Class A apartment buildings in Chicago’s downtown area this year, an increase from the 2.3 percent increase year-over-year seen in the third quarter.

Georgetown’s Chicago holdings include the 45,000-square-foot retail building at 35 North State Street, leased to Irish fashion brand Primark, and the two-story Lincoln Park Centre, at 755 West North Avenue in Chicago’s Old Town neighborhood.

The firm also owns 1565 North Clybourn Avenue, where it plans to develop a 37-story apartment tower, replacing a former Bank of America branch. The project includes preserving a two-story retail building and a four-story parking garage.

— Andrew Terrell