Amit Goel’s family office pulled $1.4 million in equity out of a Chicagoland apartment complex with a fresh round of debt.
Goel Investments landed a $130 million loan from an affiliate of Bridge Investment Group to refinance 500 Station Apartments, a 417-unit property in Aurora, Bisnow reported, citing a Fitch Ratings presale report. The financing works out to $311,751 per unit.
The debt replaces a prior $130 million mortgage from MF1 that came due last year and is being rolled into a $915 million collateralized loan obligation. The financing matures in 2028 with an option to extend to 2030.
The loan is the largest in the CLO and was sold into the pool by an entity tied to Bridge’s Debt Strategies Fund V. The Utah-based private credit shop raised $2.9 billion for its previous fund in 2022, but it has raised only $62.6 million so far toward its $2.5 billion target for the current one, SEC filings show.
Built by Goel in 2016, 500 Station was appraised at $178 million, with an $8 million estimated net cash flow. Occupancy was 95.4 percent as of last month, helped by $500 leasing concessions to keep units filled through October. About one-third of tenants use Section 8 vouchers, a share that could grow to 50 percent under a plan Fitch said is meant to boost “income reliability and community benefit.” Amenities include a pool, fitness center, golf simulator, bocce courts and a pet-washing station.
The property only generates enough income currently to cover 58 percent of its debt service costs, according to the loan servicer’s latest reports on the property. The new business plan calls for rent hikes, expense stabilization and an eventual takeout with permanent financing. Aurora’s multifamily market has outperformed the metro in rent growth over the past decade, with a nearly 50 percent jump compared with 35 percent for greater Chicago, Fitch noted.
Goel Investments, a privately held firm with more than 20 completed projects, has holdings across asset classes in multiple states. Its portfolio includes Chicago’s 239-unit Rosenwald Court Apartments, the 256-unit Courthouse and Walthall Lofts in Jackson, Mississippi, and a 527-unit affordable housing portfolio along Mississippi’s Gulf Coast.
— Eric Weilbacher
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