Amount: $3,000,000 • CLTV: 85% • Rate: 8%
Property
A single-building retail asset with expanded buildable square footage located in the Chicago metropolitan area. Park 49 arranged secondary financing to facilitate the strategic acquisition and conversion of the property into a self-storage facility.
Scenario
The sponsor sought to capitalise on a prime adaptive-reuse opportunity by acquiring a vacant big-box retail structure in the Chicago area and converting it into a self-storage facility with potential for future expansion. To execute the acquisition and conversion without dilution or excessive equity requirements, the client engaged Park 49 to arrange secondary gap financing. Park 49 navigated the complexity of the conversion business plan by securing $3,000,000 in institutional preferred equity positioned behind existing senior debt. By structuring the overall capital stack to 85% CLTV at an attractive 8.00% fixed rate, Park 49 delivered the liquidity required to acquire the property and launch the conversion plan while preserving the sponsor’s project returns.