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Banks, under pressure from the Fed, have tightened their commercial real estate lending across all asset classes. The closing purse strings have especially affected construction lending and the multifamily sector. But banks will still do business with proven developers if the numbers jibe, as PNC Bank showed with a $51M construction loan to CA Ventures for its planned 26-story South Loop apartment tower.
Foundation work for the building, which CA is JV'ing on with Keith Giles, is already underway. PNC's loan is noticeable for its size, especially in this stage of the cycle. The loan accounts for 73% of CA's $70M budget, according to Crain's.
PNC and CA Ventures have done business before, another reason the bank was comfortable approving this loan. It lent CA $70M to build Arkadia Tower in Greektown, a loan which the developer paid off earlier this year. CA Ventures COO Bob Flannery will be one of our panelists at Bisnow's BMAC Midwest conference, Nov. 30 at the JW Marriott Hotel. [Crain's]
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