School loan

Berkadia grants $100 million loan to FPA Multifamily

Founder of FPA Multifamily, Greg Founder and McClurg Court (Arrive Streeterville, FPA)

FPA Multifamily secured a $100.3 million acquisition loan from Berkadia Commercial Mortgage for its purchase of McClurg Court, one of Chicago’s largest downtown apartment complexes, The real deal has learned.

the acquisition of the 1,061-unit complex was first reported in Crain’s earlier this month without pricing. The funding, secured through the Cook County Archives, has not been previously reported.

Multi-Employer Property Trust Fund was the seller of the complex located at 333 E. Ontario Street. When it listed the property in late January, the MEPT was eyeing $200 million, about $189,000 each. The company paid $126 million for McClurg Court in 2006. BentallGreenOak, who oversees the building as MEPT adviser, has invested $35 million in improvements.

Built 50 years ago, the twin-towered McClurg Court features a fitness center, swimming pool, tennis courts and outdoor patios. The complex has become the preferred residence for employees and graduate students of Northwestern Memorial Hospital and Northwestern University’s Feinberg School of Medicine.

The Maryland-based MEPT listed the property for sale in 2019, touting it as an “affordable, amenity-rich living experience in a neighborhood dominated by new luxury towers,” according to Market Insights at the era.

But the property didn’t sell, and BentallGreenOak negotiated a new 99-year land lease on the 25% land that MEPT did not own – the remaining portion is owned by descendants of bookseller Andrew C. McClurg, a war veteran civil.