Onni Group Secures $1 Billion Refinancing for Eight-Tower Apartment Portfolio in Chicago and Los Angeles
Onni Group, a Canadian firm, has achieved a significant milestone by securing a whopping $1 billion in refinancing for an eight-tower apartment portfolio in Chicago and Los Angeles. The firm received an $875 million loan on a five-year fixed-rate deal, along with $125 million in mezzanine debt, to enhance the 2,791-unit portfolio, which was built between 2015 and 2023.
According to a report from CoStar, the financing amounts to $358,295 per unit and was provided by Wells Fargo Bank, Citi Real Estate Funding, and Goldman Sachs. The debt will be packaged and sold to investors, with the CMBS loan replacing $930.5 million in existing debt, covering additional costs, and allowing Onni to gain $38.6 million in equity.
This successful refinancing comes at a time when the commercial real estate industry has been facing challenges due to a tight lending climate, hindering sales and developments across the nation. Many landlords have struggled to refinance their assets, leading to a growing wave of distress in the market.
The portfolio includes 2,226 apartments, 565 short-term rental units, and 174,963 square feet of commercial space. Properties in Chicago involved in the deal are located in prime areas such as River North and Fulton Market.
Onni Group has ambitious projects in the pipeline, including a $1 billion development near the site of Bally’s planned casino complex and a 698-unit residential tower in Fulton Market. The firm’s success in securing this refinancing highlights its strong position in the market and its commitment to growth and innovation in the real estate sector.