March 19, 2020
Chairman and CEO Neil Freeman and Vice President Brandon Perdeck are pleased to announce that they have closed a $3.4 million non-recourse loan for the acquisition of an 8,700 square foot restaurant building at 164 E. Grand Avenue in Chicago’s Streeterville neighborhood. The property is fully occupied by restaurant tenant The Hampton Social.
The 5-year, fixed-rate, non-recourse loan was arranged through a local bank on behalf of borrower Rüger Holding at an interest rate under 4% with a 60% loan-to-value ratio and 25-year amortization. Existing tenant, The Hampton Social, is owned and operated by Chicago-based Parker Restaurant Group and will continue its 10-year initial term lease ending in 2027.
The financing was successfully obtained during a time when an unprecedented number of restaurants nationwide are struggling to make rent payments or closing due to financial strain brought on by COVID-19 related occupancy restrictions and disrupted customer demand. According to a study by the National Restaurant Association, as of the beginning of December 2020 over 17% of the country’s restaurants had shuttered permanently.