Red Oak Capital Holdings provided $3.25 million to refinance and renovate a multi-tenant industrial property in North Chicago. The financing carries a 10.50% interest rate and is structured as a 12-month bridge loan with two 6-month renewal options. The debt represented a current LTV of 53% and a stabilized LTV of 49%.

The building is owned by Chicago Property Investors LLC and consists of a 92,511-square foot industrial facility at 4850 W. Bloomingdale Ave. Situated on a three-acre site in Chicago North industrial submarket, the asset was built in 1972 and most recently renovated in 2019. It features 10’ to 18’ clear heights, four dock-high doors and two at-grade drive-in doors.

The borrower, which purchased the asset in 2018, intends to make about $350,000 in capital improvements to the property and increase occupancy and rental rates through hands-on management. Milwaukee Logan Investments, LLC Series 3 Property Management will continue to handle all aspects of the leasing and operations. The renovation and leasing efforts are expected to increase the property’s NOI by nearly 50%. Once stabilized, the borrower plans to refinance the bridge loan with permanent financing or sell the asset.