Red Oak Capital Holdings provided $4.25-million bridge loan for a class B multi-tenant industrial facility in North Chicago, Illinois. The loan was structured with a note rate of 10.50% and a 12-month term with two 6-month renewal options. Underwritten under Red Oak’s Opportunistic Bridge Program, the financing represents 66.41% of the asset’s “As-Stabilized” value of $6.4 million. The borrower, a longtime Chicago-area investor, plans to pay off a matured loan and stabilize the asset via capital improvements and leasing efforts.

Located on a 1.1-acre site at 3850 W. Cortland St., the 92,511-square-foot building was built in 1960 and last renovated in 2019. The asset features over 37,000 square feet of office space, 12’ to 22’ clear ceiling heights, four dock-high doors, and six at-grade drive-in doors.

The outlook for the Metro Chicago industrial market is bullish, with vacancy rates below 4% and rents continuing to rise despite slight softness in recent months. The sponsor, Michael Goldstein of Chicago Property Investors LLC, has a 40-year history of purchasing large single-tenant buildings and converting them into multi-tenant spaces. He has amassed a portfolio of some 70 commercial properties in the Greater Chicago region.