Were these juice loans or just routine?

Crain’s Chicago Real Estate Daily describes describes as “eye-popping” the 50% interest rate on $3.2 million loaned to American Invsco in connection with a failed bid to acquire a large apartment portfolio.

My eyes didn’t pop thirty years ago when I examined notes carrying a 50% interest rate issued by American Invsco in connection with projects in Chicago and Denver.

Nor did my eyes pop this time around, despite the sharp reduction in general interest rates during the intervening thirty years. The parties to these loans doubtless priced the yield to reflect the risk that was being undertaken in the transaction. The rate was eye-rolling rather than eye-popping.

The Lex, pictured above, is one of the apartment projects in the portfolio American Invsco sought to acquire.

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