A 32-unit multifamily property in Chicago's Logan Square neighborhood has landed a $3.9 million cash-out refinancing loan. American Street Capital arranged and originated the 20-year, Freddie Mac SBL financing on behalf of local investor Burt Fujishima. Greystone was also involved in the loan, public records show.
Fujishima has owned the property at 3417-3427 W. Drummond Place since 1995, Cook County records indicate. The investor plans to use the loan proceeds to support future investment activity.
The four-story building, opened in 1926, has a mix of studio, one- and two-bedroom apartments, with an average floorplan size of 600 square feet. Amenities include laundry facilities, bicycle storage, and storage space. The community was fully occupied at the time of the refinance.
Chicago Draws Multifamily Investment
Chicago's population has been getting smaller and smaller in recent years, and it hasn't just been a result of the deurbanization effects of the pandemic. Despite this, there are some signs that rental demand is picking up in the Windy City, a Matthews multifamily report highlights.
Even though rent growth in the past year has trailed the national figure, investment is far from lagging. CoStar data shows 1,024 sales totaling $5.9 billion in 2021, with properties trading at an average of $172,000 per unit.
Given the report's projected market cap rate of 5.7%, investors may be seeking to deploy capital in a market seen as slightly riskier than other gateway markets. With rents set to increase in the coming year, owing to a lack of multifamily construction, those risks may not be as large as demographic shifts suggest.