Property Name: JeffJack Apartments
Location: Chicago, Illinois
Asset Type: Class A+ luxury multifamily development
Size: 190 units
Transaction: Preferred equity investment in new construction, high-rise development in the West Loop neighborhood of Chicago
Core Competency: Underwriting and sourcing of high quality investment opportunities
The transaction provided an opportunity to invest preferred equity alongside the developer of a new construction luxury multifamily rental high-rise in the West Loop neighborhood of downtown Chicago. The developer had committed significant equity to the development and was looking for a preferred equity piece to round out the capital stack. The developer was attracted to Oak’s asset management and operations expertise, as well as its ability to be nimble and move quickly.
While the investment represents a departure for Oak from its core business, the team’s entrepreneurial nature and desire to seek out attractive investments in the residential space drew them to the opportunity. They were able to underwrite the transaction and determine it to be a sound investment.
Construction began in January 2014 and the building was completed in April 2015 on time and within budget. The developer subsequently sold the asset to an institutional fund advisor one year earlier than originally expected generating attractive returns to Oak’s investors.