U.S. Bank and Related Midwest closed on a $115 million loan to finance construction on 111 W. Wacker Drive, a 504-unit apartment complex in downtown Chicago.
Originally planned to be the fifth-tallest building in Chicago, the prior development reached a mere 25 stories before the economic recession halted construction in 2008. The project has been sitting unfinished since then.
In July, 2011 Related acquired the building and announced plans to transform the tower into a 60-story luxury rental building. Demolition is currently underway and vertical construction is expected to start in early 2013 with completion by the spring of 2014.
“In cities all over the country, U.S. Bank is working with customers like Related to get the economy moving again,” Don Pafford, Chicago commercial real estate manager with U.S. Bank, said in a statement. “We are happy to see this project will move forward and become a significant addition to the heart of Chicago.”
Related Midwest, a division of New York-based Related Companies, has recently completed several developments in Chicago, including 340 On the Park, 840 North Lake Shore Drive, Park Tower, The Belvedere and The Pearson and is currently developing 500 North Lake Shore Drive.
“Chicago’s rental market is strong and demonstrating healthy rent growth,” Curt Bailey, President of Related Midwest, said in a statement. “Not only will we bring greatly desired best-in-class luxury rental apartments to downtown Chicago, but together we are creating hundreds of jobs and investing in the future of our great city.”
U.S. Bank served as the lead lender on the deal. Bank of America served as the syndication agent.