September 2026 · Multifamily Refinancing · Chicago, IL
Essex Capital Markets Arranges $1.6 Million Lakeview Multifamily Refinancing for Five-Unit Property
Essex Capital Markets arranged a $1.6 million Lakeview multifamily refinancing for a five-unit property at 1325 West Barry Avenue in Chicago. The new bank loan retired the seller financing used to acquire the asset and returned capital to the borrower for future acquisitions. Directors Asher Motew and Quinn Keenan led the transaction with Analyst Josh Letellier.
Deal Snapshot
Why This Five-Unit Property Required a Specialized Lender
The property did not fit a standard five-unit lending profile. The owner occupies one unit and operates a second as a short-term rental, an income structure that falls outside the parameters most lenders apply to small multifamily loans.
The existing seller financing also needed to be retired, and the borrower wanted to pull equity out for his next acquisition rather than simply replace the debt.
How Essex Capital Markets Structured the Refinancing
Essex Capital Markets sourced a local bank willing to underwrite the property on how it actually performs across all five units rather than on a conventional template. The team documented income from the owner-occupied and short-term rental units alongside the conventional leases, which supported both the payoff of the seller financing and a cash-out return of capital to the borrower.
“This was a unique property from a lending perspective. The owner occupies one unit and operates another as a short-term rental, so it required a lender willing to look beyond a conventional five-unit profile and understand how the asset actually performs. We were able to demonstrate the strength of the property across all five units and ultimately replace the existing seller financing with institutional bank debt while returning capital to the client for his next investment.”
Asher Motew, Director, Essex Capital Markets
About the Lakeview Multifamily Market
Lakeview is one of Chicago’s most established North Side neighborhoods and a consistently active submarket for small-balance multifamily investment. The property sits within a dense residential base with walkable access to neighborhood retail, dining, and CTA transit.
Lakeview’s mature housing stock and durable tenant demand continue to attract multifamily investors seeking long-term hold positions on Chicago’s North Side.
Financing Team
- Asher Motew — Director
- Quinn Keenan — Director
- Josh Letellier — Analyst
Frequently Asked Questions About This Transaction
Who Arranged the Financing at 1325 West Barry Avenue?
Essex Capital Markets, LLC arranged the $1.6 million refinancing. Directors Asher Motew and Quinn Keenan led the transaction with support from Analyst Josh Letellier.
Can an Owner-Occupied Five-Unit Building With a Short-Term Rental Qualify for Bank Financing?
Yes. Essex Capital Markets placed this loan with a local bank that underwrote the property’s actual performance across all five units, including the owner-occupied unit and the unit operated as a short-term rental. Lenders willing to look past a standard five-unit template do exist, but sourcing them typically requires established banking relationships.
What Is a Seller Financing Takeout?
A seller financing takeout is a refinancing that replaces a loan originally provided by the property seller with conventional or institutional debt. In this transaction, the new bank loan retired the seller financing used to acquire the property and returned equity to the borrower.
Can You Refinance a Five-Unit Multifamily Property in Chicago and Pull Cash Out?
Yes, depending on the property’s performance and the lender’s leverage and coverage parameters. Here the borrower retired existing seller financing and recovered capital for a future acquisition in the same refinancing. Coverage requirements vary by lender, as covered in our guide to DSCR requirements in commercial real estate.
Does a Five-Unit Property Qualify as Commercial or Residential?
Five or more units is generally treated as commercial multifamily for financing purposes, which means it is underwritten on the property’s cash flow rather than through residential lending channels. Properties of one to four units typically fall under residential financing programs.
Financing a Multifamily Property in Chicago?
Every property has a lender that fits it. The difference is often knowing which one, and being able to present the asset in a way that lender can underwrite.
Essex Capital Markets arranges debt and equity for commercial real estate owners and investors across banks, agencies, debt funds, life companies, and private capital sources.
Talk With Essex Capital Markets