The Offering:

Cedar Street. is offering ~$24M of equity on a stabilized asset in the heart of Chicago’s Loop next to Millennium Park.  Their Development Team completed a successful adaptive reuse of an existing landmark office building in 2018 with a conversion to multifamily while maintaining legacy retail tenants on the ground floor including the historic Miller’s Pub.  The asset consists of 176 Multifamily units and $19K sq ft of retail space on the ground floor. The property holds attractive fixed rate senior debt at a 3.65% interest rate with over 35 years of term remaining on a 40-year amortization schedule and is assumable upon sale. The current senior debt balance of approximately $42.4MM represents a 64% LTV on the going-in basis of $66.0MM.

Who is Cedar Street?

Cedar Street is a well-known institutional asset manager that currently oversees approximately $4B in assets and has deployed capital for some of the biggest names in finance (Goldman Sachs, Guggenheim, Bridge Investment Group etc.).  They’ve deployed capital for other sponsors in the Broker-Dealer space such as Cantor Fitzgerald and Griffin and view their entry into our market as an opportunity for investors to go directly to them vs. a fund of funds through one of the forementioned sponsors with double fees and promotes.

Why this is being offered to The Syndicate?

Equity recaps are rarely (if ever) seen in the IBD space due to the proportionate cost of taking something this size to market.  There are a handful of key features that make this very attractive and a great example of the interesting products we can bring the syndicate: 

• Unique opportunity to give clients access to an institutional recap
• Low-cost assumable debt
• Conservative going-in valuation of the property (5.65% Cap @ 66MM)
• No promote
• No change in management
• In-force rents from stabilized tenants