OakNorth, a digital bank for entrepreneurs, has provided a $53m loan to DAC Developments and Melrose Ascension Capital.
Founded in 2016, DAC Developments is a Chicago-based real estate development company “with a focus on multifamily residential and mixed-use ground up developments.”
With 85 projects completed to date and over “$2bn of real-estate assets developed, the firm is committed to delivering high-spec residential spaces for people from all walks of life, young or old, urbanite or suburban commuter, single or family.”
Melrose Ascension Capital is a private equity real estate development and investment firm “based in Chicago, that is currently developing one million sq. ft of multifamily projects in Chicago and across the US.”
The firm specializes in utilizing “industry fundamentals, innovation, and a relationship-oriented approach to source, capitalize, and execute its multifamily projects alongside global capital partnerships, and prioritizes catering to demographics that are often outpriced and overlooked by other housing developers.”
The $53 million loan from OakNorth will be used to support the development of a Class A, 19-story residential tower in Downtown Chicago.
Located at 630 S Wabash, the site will offer 164 highly amenitized and highly affordable residential units, over 4k sq. ft. of retail space and 64 parking spaces.
Residents will have access to high-end amenities “such as a spa, rooftop pool and hot tub, basketball court, coworking space, and fitness center — all located on the upper floors of the building.”
Max Saidman, Director of Debt Finance at OakNorth, added:
“This transaction underscores OakNorth’s ability to support experienced developers on sophisticated urban projects across the U.S. Our support of DAC Developments and Melrose Ascension Capital on this highly impressive 626 Wabash reflects our ongoing commitment to the lower mid-market and to addressing the structural undersupply of quality rental housing in major U.S. cities.”
Launched in September 2015 and founded by entrepreneurs, OakNorth is a digital bank focused on “serving and empowering the lower mid-market (businesses with £1m-£100m in turnover), that are seeking to scale but are routinely underserved or overlooked by traditional banks.”
To date, it has provided “$17bn to these businesses across a wide range of sectors, achieving performance metrics that place it amongst the top 1% of commercial banks globally.”
Its loans have directly contributed to the “creation of 56,000 jobs, and over 34,000 new homes across the UK and the US – the majority of which are affordable and social housing.”
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
