One of the nation’s biggest construction lenders has given Nick Marietti the fuel he needs to start construction on a suburban Chicago rental project.
Marietti’s Schaumburg-based firm VennPoint Real Estate closed on $55 million in financing, led by Bank OZK’s nearly $46 million construction loan, for the 144-unit townhome project slated for Five Parkway North Boulevard in Deerfield, according to a news release.
The developer scored the remaining $9.9 million in funding from an undisclosed insurance company in the form of a mezzanine loan.
The deal underscores growing interest in suburban Chicago townhome developments. Chicago-based JDI Realty last year spent $34 million on buying up a portfolio of 164 townhomes throughout Chicago’s surroundings that the seller had built up over 14 years.
VennPoint purchased the approximately 10 acres targeted for construction for $10.2 million, from its previous owner, Deerfield-based Quadrangle, which spent a little more than $5.8 million to buy the land in 2015, public record show. The development site is adjacent to a multi-building corporate office complex that includes the 258,000-square-foot One Parkway North building, whose landlord Joseph Horn is in default on a $12.7 million loan.
The residential development is dubbed Park5 and will include two- and three-bedroom layouts averaging a little more than 1,900 square feet each, with two-car attached garages and private yards and outdoor space — rarities for traditional multifamily rentals.
VennPoint’s plan is to set aside 14 units as affordable to comply with Deerfield’s housing regulations, it told public officials in October. Its original plan was to build 147 units, but it scaled that slightly back to 144. The financing pencils out to $382,000 per unit.
JLL’s Matthew Schoenfeldt and Mary Dooley represented VennPoint in its deal for the construction debt. JLL’s Dan Reynolds and Chris Cummins advised the land seller Quadrangle.
The project is one of several rental developments coming to Deerfield. Wisconsin-based Continental Properties last year raked in a $54 million construction loan to pursue a 254-unit rental project, with 25 units designated as affordable, near Interstate 94 and South Waukegan Road. Separately, Chicago-based Celadon Partners is kicking off a $70 million plan to replace an office complex at 1101 Lake Cook Road with an affordable senior housing community.
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