Onni Group Lands $1B Refinancing for Eight Apartment Properties

Onni Group hit 10 figures in refinancing an eight-tower apartment portfolio in Chicago and Los Angeles.

The Canadian firm received an $875 million loan on a five-year, fixed-rate deal, plus $125 million in mezzanine debt, to bolster the 2,791-unit portfolio, built between 2015 and 2023, CoStar reported, citing a Fitch Ratings report. The financing comes to $358,295 per unit.

Wells Fargo Bank, Citi Real Estate Funding and Goldman Sachs provided the debt, which will be packed and sold to investors. The CMBS loan will replace $930.5 million in existing debt, cover additional costs and allow Onni to gain $38.6 million in equity.

The refinancing is a major win for Onni given the tight lending climate that’s been a thorn in the side of commercial real estate for more than a year, hindering sales and developments across much of the nation. Tough lending standards have also contributed to a growing wave of distress, as many landlords have struggled to refinance their assets.

The portfolio comprises 2,226 apartments, 565 short-term rental units and 174,963 square feet of commercial space. Chicago properties in the deal include towers at 1140 North Wells Street, 228 West Hill Street, 369 Grand in River North, 750 North Hudson Avenue and Onni Fulton Market at 354 North Union Avenue.

Onni Group has several ambitious projects in the pipeline. The firm is planning a pair of $1 billion developments near the site of Bally’s planned casino complex; it recently scored initial approval for one of them, Halsted Landing, which is slated for nearly 2,500 apartments across four towers along with retail, green space, an amphitheater and a water taxi stop.

Onni Group is also pursuing a 698-unit residential tower at 357 North Green Street in Fulton Market.

—Quinn Donoghue