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- $498B in Lending, Chicago Tax Breaks & Historic Conversions in Focus
$498B in Lending, Chicago Tax Breaks & Historic Conversions in Focus
Big Red Flags & Bold Buys
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In a major shift for the Chicago property market, commercial property owners have successfully appealed their tax assessments, reducing their share of the city’s property tax burden from 49% to 46%.
Key highlights:
• Appeal Success: CRE owners saw a 17% valuation reduction vs. just 1% for residential.
• Assessor Dynamics: Reassessment initially favored residential, sparking widespread appeals.
• Market Implications: Raises questions about long-term stability and investment attractiveness.
• Ongoing Volatility: Experts caution that the uneven outcomes may create unpredictability in future tax cycles.
This outcome offers temporary relief for CRE stakeholders, but also underscores persistent friction in Chicago’s property tax system.
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Walker & Dunlop has arranged $121.5 million in equity and debt for the OceanGate acquisition in Long Branch, NJ. The Class-A rental property will be transformed into a luxury condo community.
Deal breakdown:
• Capital Stack: $46.5M JV equity (RWN + Avenue Realty Capital) + $75M debt (TPG Real Estate Credit).
• Strategic Pivot: Rental-to-condo shift targets strong coastal demand.
• Amenities: Beach access and resort-style design appeal to high-end buyers.
• Market Context: Part of a broader trend of repositioning premium multifamily assets.
With over $16B sourced in 2024, Walker & Dunlop’s capital markets team continues to play a central role in driving transformative real estate finance.
The NAIOP New Jersey Gala returned on May 27, spotlighting trailblazers in development, finance, and service. Hosted at The Palace at Somerset Park, this 38th annual event celebrated standout transactions and lifetime contributions.
Honorees included:
• Jeffrey Milanaik (Bridge Industrial) – Charles Klatskin Lifetime Achievement Award.
• Cole Schotz – Industry Service Award for legal excellence.
• Deal of the Year Winners: Unilever’s Hoboken restructure & Vintage City in Elizabeth.
• Community Impact: Projects recognized for complexity, creativity, and regional benefit.
These awards highlight the caliber of work shaping New Jersey’s commercial landscape.
In Venice, Los Angeles, Allied Commercial has completed a striking adaptive reuse of a 1939 post office into a modern creative campus at 1601 Main Street—now the headquarters of Lighthouse Creative Group.
Transformation highlights:
• Preservation First: Original stucco and murals retained per federal historic standards.
• Artistic Purpose: Now serves media, events, and artist workspaces.
• Expert Team: Collaboration included Chattel (historic consulting) and JTM Construction.
• Cultural Value: Reinforces the importance of preserving history while enabling modern use.
This is a model for converting underutilized historic buildings into dynamic community anchors.
According to the MBA’s annual origination data, CRE lending rebounded in 2024, with volume up 16% year-over-year—driven by renewed multifamily activity and broader financing momentum.
Lending breakdown:
• Total Originations: $498B in 2024, still down from the 2022 peak of $816B.
• Banker Impact: Commercial mortgage bankers closed $411B (+34% YoY).
• Market Tailwind: $957B in maturing mortgages projected for 2025 will further fuel activity.
• Expert Insight: MBA’s Reggie Booker notes optimism amid refinancing demand.
This rebound signals improving liquidity and confidence among capital providers across asset classes.