—David and Douglas Baum of Baum Development has gained a $26.5 million, 10-year non-recourse CMBS loan for the Green Exchange, a mixed-use property at 2545 W. Diversey.
Former owner Cooper Lamp Factory vacated the 270,000-sq.-ft. building in 2005. The Baums bought the building, but lost their lender due to the recession. The Baums were able to find a new lender and gained a new tenant, Coyote Logistics, along with a $15 million loan for redevelopment, historic tax credits and tax-increment financing. Other tenants include WeFarm America, NewGrange Development, Green Energy Improvement and Green Choice Bank among others.
Aries Capital secured a $26.5 millionfirst mortgage to supplement and integrate with the borrowers’ existing loans and incentives. The combined financing package provided Baum Development with reserves for future leases and rent abatements, and augmented the loan proceeds by utilizing the future cash flow from executed leases with occupancy 18 months out, according to Neil Freeman, Aries chairman and CEO.
“David and Doug showed enormous determination and creativity to create a world class building and substantial job opportunities in the Chicago neighborhoods,” Freeman said.