A wave of venture capital investment, increased federal spending and tenant demand for high-quality space is putting the sector under the microscope.
Despite near-term concerns over rising property taxes and high crime rates, lenders see the Windy City as the Midwest’s once and future cultural, population and economic hub.
Jay Sugarman, chairman and chief executive of ground lease specialist Safehold, believes a new take on an old structure could lead to a $500bn industry.
The Los Angeles-based manager is angling itself for another round of volatility, says Justin Guichard, co-portfolio manager of the platform.
The firm believes there has been a push toward real estate debt strategies due to lack of alternatives within the broader fixed income market.
The $103 million financing will spur about $40 million of cashflow savings over the next 10 years.
The Los Angeles debt fund manager sees its construction and development background as crucial to its success as a lender.
Charles Foschini, who arranged the loan via Berkadia, said rising rental rates at Enclave at Lake Ellenor meant the borrower was able to secure better terms.
The multifamily specialist sees more differentiation from lenders.
Through the new partnership, the organisations have already closed two deals, including the £251m financing of a residential development in London’s Nine Elms.