Overview

Bank of China contributes $280 million USD to a $345 million USD syndicated loan for the NEMA Chicago 2021 Refinancing Project

Commitments (Constant USD, 2023)$258,199,658

Commitment Year•2021Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Aug 1, 2021

Geospatial footprint

Map overview

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The proceeds were to be used by the borrower to refinance debt on NEMA Chicago, a 800-unit 76-story multifamily luxury residential tower located at 1210 South Indiana Avenue in Chicago, Illinois. Its exact address is 1210 South Indiana Avenue Chicago, Illinois 60605. More detailed locational information can be found at https://www.openstreetmap.org/way/509032412

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

Bank of China (BOC)

Cofinancing agencies

Private Sector

KKR Real Estate Select Trust Inc. (KREST)

Receiving agencies

Private Sector

Crescent Heights, Inc.

Loan description

Bank of China contributes $280 million USD to a $345 million USD syndicated loan for the NEMA Chicago 2021 Refinancing Project

Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

In August 2021, a two-lender syndicate — the Bank of China (BOC) and KKR Real Estate Select Trust Inc. (KREST) — entered into a $345,000,000 USD syndicated loan agreement with Crescent Heights, Inc. — an American privately-held real estate development company based in Miami, Florida — for the NEMA Chicago 2021 Refinancing Project. This loan carried an interest rate based on a floating rate with an all-in rate of 2%. BOC contributed $280 million USD in senior debt while KREST provided $65 million USD in mezzanine debt. The proceeds were to be used by the borrower to refinance debt on NEMA Chicago, a 800-unit 76-story multifamily luxury residential tower located at 1210 South Indiana Avenue in Chicago, Illinois. It is the largest residential tower in Chicago and features 71,000 square feet of amenity space. Construction completed in 2019.

Staff comments

1. It is plausible, if not likely, that the specific borrowing institution was a special purpose vehicle subsidiary of Crescent Heights, Inc. This issue merits further investigation.