Finance N Illinois

PMG secures $30.7 million refi for co-living project, X Chicago

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X Social Communities (XSC), a multifamily division of Property Markets Group (PMG), has closed on a $30.7 million loan from NXT Capital to refinance its 99-unit X Chicago project, which opened in June 2018. The loan replaces a construction loan from Principal Financial Group and returns capital to equity investors, including Raven Capital Management.

“Obtaining this refinancing for X Chicago less than six months after opening shows the strength of the X Social Communities model and brand to drive value,” said Noah Gottlieb, PMG principal. “It also re-affirms our long-term belief in the local Chicago market.”

X Chicago, located at 710 W 14th Street in the University Park neighborhood, is the city’s second offering after a Logan Square location that delivered in 2016. The co-living projects allow residents to lease an apartment or participate in a “Rent-By-Bedroom” program for a private bedroom and bathroom with roommates. All units come with floor-to-ceiling windows, built-in closets, smart thermostats and an app to manage keyless entry, guest lists, and packages. Amenities include a modern gym and fitness studio, cocktail terrace with fire pit, social lounge, communal kitchen, co-working lab, dog park and rooftop grilling entertainment patio and lawn with downtown views.

“As further validation from the capital markets for the X Social Communities platform, we’re thrilled to see the business plan play out as expected,” said James Masciello, principal of Raven Capital Management. “It’s an exciting next step for our national platform partnership.”

Andrew Warman, Jonathan Blank and Scott Buscemi led the PMG team, and Matthew Ehret and Jay Evans led the NXT Capital team on the closing of this loan. Jimmy Conley and Christopher Peck from HFF brokered the transaction.

In addition to the two Chicago locations, PMG opened X Miami in 2018. To date, PMG and Raven have secured capital for $1 billion in X projects, planning more than 10,000 units for the XSC portfolio over the next five years in cities including Denver, Fort Lauderdale, Oakland, Orlando and Phoenix. XSC reflects a cultural value shift to ‘luxury’ being defined as access to unique and authentic experiences, and provides value through real-world connections in a technology-enabled and shared setting.