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  • Bill Herr

New Secured Loan Investment in Darien Business Center

Darien Business Center is an Income Series Investment

We are working again with our preferred partner, a specialty finance company, as a loan participant to secure a $13M loan on a 175,969-square foot, suburban office park consisting of four buildings situated on 17 acres along South Cass Avenue in Darien, DuPage County, Illinois. There is also an additional 1.738 acre excess land parcel that is suited for future retail or office development.

The borrower will have injected over $3.5 million in cash into the property. In order to further secure the loan, the Borrower is signing a corporate guarantee, with a reported $20+ million in additional equity.

The Borrower will acquire the asset, cure $1.7 million of deferred maintenance, lease and stabilize the buildings. The property is 68% leased with the University of Chicago Medicine & Biological Sciences, Information Services department as its largest tenant. The existing property generates $1,130,000 in net operating income (NOI).

Loan Highlights

  • Loan Amount=$13M

  • Term: 12 months

  • 68% leased

  • $1,130,000 Net Operating Income (NOI)

  • Loan Participant Yield (IRR) = approximately 11%

  • Lien: 1st lien, A/B structure (see below)

  • 75% Loan-to-Value

The property was acquired in 2007 for $29 million at or near the height of the commercial real estate market.

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