A stalled West Loop apartment project is back on track after its developer secured a construction loan to move forward. Riverside Investment & Development obtained a $64 million loan backed by the U.S. Department of Housing & Urban Development to launch an $85 million, 199-unit rental building at 56
The loan will finance an $85 million, 199-unit rental building at 566 West Van Buren Street in Chicago's West Loop, with completion expected in early 2027.
This deal signals a potential easing in Chicago's multifamily development pipeline, which has been constrained by rising costs and volatile interest rates.
Interest rate volatility
HighSecuring long-term fixed-rate financing through HUD's program.
Construction cost inflation
MediumLocking in contracts and prices early in the construction process.
Market absorption rates
MediumConducting thorough market analysis to ensure demand aligns with supply.
The article reports on Riverside Investment & Development securing a $64 million HUD-backed loan for a 199-unit rental building in Chicago's West Loop. The project, delayed due to rising costs and interest rate volatility, is now set for completion in early 2027. The financing was arranged by Draper and Kramer, with equity from Blue Star Properties and Metropolis Investment Holdings. The loan, through HUD's 221(d)(4) program, offers fixed-rate, fully amortizing terms for up to 40 years. Riverside plans to offer competitive rents at $4.25 per square foot.
This source provides detailed insights into the financing structure and strategic positioning of Riverside's project, crucial for understanding the project's viability and market impact.
The HUD-backed financing suggests a bullish outlook for multifamily development in constrained markets.
therealdeal.com
The project was first proposed in 2022 but was stalled due to rising costs and interest rate volatility. The HUD loan was secured in April 2026, allowing construction to resume with completion expected in early 2027 [therealdeal.com].
End of Intelligence Report · 1 Sources Verified