Canada’s Onni Group has secured US$1 billion in refinancing for an eight-tower apartment portfolio in Chicago and the Los Angeles area, according to a Fitch Ratings report.

Vancouver-based Onni is slated to receive US$875 million on a five-year, fixed-rate deal and US$125 million in mezzanine debt, Fitch reported. Onni

Under a deal slated to close July 18, Wells Fargo Bank, Citi Real Estate Funding and Goldman Sachs have agreed to provide the debt, which will be packaged and sold to investors. The commercial-mortgage-backed-securities loan will be used to repay $930.5 million in existing debt, cover other costs and provide Onni with $38.6 million in equity.

The portfolio contains 2,791 units built between 2015 and 2023, according to Fitch. Three of the properties were delivered in 2023.

The properties include 565 short-term rental units and 174,963 of commercial space, which was 51.6% leased at last report.

Five of the properties to be refinanced are located in Chicago, while the others three are situated in Greater Los Angeles.

The Chicago properties include two towers within the Canadian firm’s Old Town Park project; the 369 Grand asset in River North; 750 North Hudson Avenue and Onni Fulton Market.

The Los Angeles-area assets include Onni East Village in Long Beach, Calif.; Level Los Angeles and SMB Hollywood.

Founded and led by the De Cotiis family, Onni is a commercial real estate development and investment firm that has been operating for more than 60 years. Onni builds, owns and operates multi-family office, retail and industrial assets in Los Angeles, Seattle, Chicago, Phoenix, Toronto, and Vancouver, as well as in Mexico.

Pictured: Onni’s SMB Hollywood apartment building in Los Angeles.

Illustration: Onni Group