Meridian Capital Group, America’s most active dealmaker, arranged $57 million in financing to refinance The Residences at Eagle Building, a newly constructed, mixed-use, geothermal property in Chicago, IL, on behalf of Dave Gassman of DLG Management.
The 15-year loan, provided by an insurance company, features a rate of 3.00%. $47 million was provided initially with the remaining $10 million provided once the property reaches stabilization. This transaction was negotiated by Meridian Managing Director, Gershon Friedman, who is based in the company’s Chicago, IL office.
The first geothermal, privately owned building of its kind in the Midwest, this unique property rests on top of 60 wells that extend 500 feet below ground, supplying heat and cooling for the building, while 130 solar panels on the roof help generate electricity. Apartments feature R-30 insulated walls, insulated and gas filled windows, and electric and energy star appliances. The Residences at Eagle Building is a LEED Certified Gold Standard property.
Located at 3817-45 North Broadway in the heart of Chicago’s Lakeview neighborhood, the property was completed in 2019 and consists of 20,000 square feet of commercial space currently leased to Starbucks, Smylie Brothers, and Lakeview Food Pantry in addition to 134 studio- to three-bedroom apartments. All units are equipped with modern kitchens, stainless steel energy efficient appliances, dishwashers, in-unit washers and dryers, track lighting, spacious layouts and an abundance of natural light. Residents also benefit from communal amenities such as a fitness room, clubroom, barbeque facilities, and a rooftop running track and community garden.
“The Residences at Eagle Building is a unique, first-of-its-kind property in the Midwest. Dave Gassman’s idea to develop a geothermal mixed-use property is ingenious; not only is the building environmentally friendly, but it also allows him to mitigate risk and enhance bottom line performance by regulating utility expenses, which are a fraction of what they would be otherwise. It is also worth mentioning that Dave spared no expense when it came to detail on this project, an example of which is the property’s heated sidewalks—an extremely beneficial amenity in Chicago winters,” said Mr. Friedman. “Despite the fact that the property was in the middle of the lease-up process, Meridian was able to successfully negotiate favorable permanent financing based on the top-tier quality of both sponsorship and the asset.”