Overview
Amundsen Davis assisted our client in establishing a real estate company with two sub-entities, an apartment management company and an environmental cleanup company. We helped establish the for-profit entity, completed a subscription agreement, and issued stock to multiple investors. Our client partnered with another entity to assume a development agreement with the village by which they bought a blighted parcel from the village’s community development authority for $1. As that acquisition closed, a new certified survey map was recorded, creating four new lots from the site. Lot 1 was conveyed to the apartment company for construction of a 77 unit apartment building, and Lots 2-4 were conveyed to the environmental clean-up company for clean up and eventual development of additional apartments and retail space. A side entity that works with the village on revitalization projects will administer grant payments for the environmental cleanup work required on the site. One week after acquisition of the property, we assisted our client in closing a new $10.6 million construction loan with the bank through a Chicago-based title company. The borrower completed an interest rate derivatives swap on the loan, securing a 4.1% rate on the financing.
