Walker & Dunlop Investment Partners originated a $62.5 million lease-up loan to refinance existing construction debt on 945 Nanusha Residences in Buffalo Grove, Illinois, according to Commercial Observer. The borrower on the newly built suburban Chicago multifamily property is Noah Properties. Arrow Real Estate Advisors negotiated the financing with a team led by Morris Betesh and Jacob Petrovic.
The transaction closed in roughly 30 days from sign-up, taking out existing construction debt ahead of the property receiving its temporary certificate of occupancy. The debt structure carries the multifamily asset through its leasing phase and into stabilization under a single loan.
What happened
The newly built apartment community is located at 945 North Old Arlington Heights Road, about 30 miles northwest of Downtown Chicago. The property consists of 223 apartments across 231,970 gross square feet. Resident amenities at the property include a courtyard, a swimming pool, cabanas, an outdoor grilling area, a rooftop lounge with a fire pit, a fitness center, and electric vehicle charging stations.
The loan was structured with an interest reserve through lease-up to finance remaining project costs while also covering real estate tax and insurance expenses. Commercial Observer reported that the pre-takeout structure reduced the cost of capital for Noah Properties before receipt of the temporary certificate of occupancy, providing debt capital through full stabilization.
What it changes for a closing
Closing a takeout facility prior to the issuance of a temporary certificate of occupancy alters the documentation and reserve requirements for deal teams. Rather than waiting for municipal sign-offs and initial tenant occupancy, lenders and closing counsel structure reserves to fund remaining project costs alongside property carrying expenses. In this deal, the interest reserve structure addressed ongoing capital requirements through lease-up while establishing escrow coverage for real estate taxes and insurance.
Executing a pre-completion takeout within a 30-day window requires close coordination on payoffs, title endorsements, and construction disbursements. Settlement teams must verify existing construction loan balances and establish post-closing disbursement controls to cover remaining work while the asset transitions into its initial leasing period.