Crain’s Chicago Real Estate Daily reported yesterday that GE Capital Corp had provided a $110 million refinancing loan for K2, a new luxury apartment tower in the Fulton River District.
According to Crain’s:
That’s nearly 45 percent more than the $76.1 million loan to finance the 34-story tower, delivering a big payday mainly to its largest equity investor, Los Angeles-based CBRE Global Investors.
The loan is a sign of how much downtown apartment values and rents have jumped since the venture landed the construction financing two years ago. Mr. Fifield declined to say how much the project cost, but sources estimated it at about $130 million. K2 was recently appraised at about $200 million, or $403,000 a unit, and it’s only about 50 percent occupied, he said.
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One reason K2 gained in value: Its rents are about 7 percent higher than initially projected.
Note: K2 is one of YoChicago’s advertisers.