CHICAGO – December 14, 2016 – CBRE Capital Markets’ Debt & Structured Finance team has secured $41 million in permanent financing for the refinance of The Buckingham, a 129-unit, 456-bed student housing facility in Downtown Chicago, Illinois.
Glenn Housman, MAI, of CBRE’s Orlando office, secured the loan on behalf of the sponsor, The Buckingham, LLC. The 10-year loan included an attractive spread over the 30-day LIBOR, at approximately 65 percent LTV. The loan was originated via CBRE’s Fannie Mae Delegated Underwriting and Servicing (DUS) program.
“The transaction represents the refinance of a high-quality student housing property in an A+ location. We had great confidence in our sponsors and the property, which my team also financed in 2009,” said Mr. Housman, senior vice president, CBRE. “However, because of the underwriting hurdles surrounding the master lease structure, while student housing deals in Chicago are commonplace, there are some challenges when compared to a typical student housing transaction. We are very pleased with the production staff at CBRE and at Fannie Mae that helped move The Buckingham to closing.”
Located in the South Loop University District of Downtown Chicago, the property is a landmark building listed on the National Register of Historic Places. The property is approximately 30 percent master leased. The tenancy also includes a branch of a Chicago area bank located on the ground floor.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.​
