CHICAGO, IL - Draper and Kramer, Incorporated, a national full-service real estate firm, today announced a team led by Matt Wurtzebach, senior vice president with Draper and Kramer’s Commercial Finance Group (CFG), has arranged $114 million in construction and refinance loans on behalf of client Tandem Development for two mixed-use properties in Chicago’s West Loop and River West. The team recently closed on $58.4 million in construction financing for Tandem for 1044 West Van Buren, a to-be-built 18-story mixed-use multifamily building in the West Loop. In addition, it also closed a $55.62 million construction loan refinance for Tandem for Avenir Apartments, a 23-story mixed-use development completed in 2019 at 730 N. Milwaukee Ave. in the River West neighborhood.
1044 West Van Buren: $58.4 Million Construction Loan
Wurtzebach originated the non-recourse loan for 1044 West Van Buren through the U.S. Department of Housing and Urban Development 221 (d)(4) program, securing a 40-year term and 40-year amortization at 78% loan to cost. Jeff Ross, senior vice president, and Kevan Briscoe, vice president, both of Draper and Kramer’s FHA/HUD direct lending program, were key members of the deal team.
“1044 West Van Buren fulfills a growing demand for high-quality, Class A apartments in the West Loop,” said Wurtzebach. “This project is a great example of HUD’s ability to execute highly competitive, non-recourse loans on market-rate apartments.”
Located on West Van Buren Street between Racine Avenue and Morgan Street, the development brings a new rental option to a rapidly evolving part of the popular West Loop neighborhood. Designed by Antunovich Associates, the building will feature 196 rental units as well as 1,775 square feet of first-floor retail space, 78 on-site parking spaces and 143 bike spaces. Apartments will have premium finishes and spacious floor plans, and many units will feature private balconies to take advantage of nearly unobstructed views to the north and east. Amenities will include a rooftop-level fitness center and yoga studio; coworking lounge with private offices; sky lounge and game room; and a deck area with fire pit and grilling stations.
Construction started in April, with anticipated completion in the second quarter of 2023.
Avenir Apartments, 730 N. Milwaukee Ave.: $55.62 Million Construction Loan Refinance
Wurtzebach originated the non-recourse construction loan refinance on behalf of Tandem Development for Avenir Apartments through HUD’s 223(f) program, securing a 35-year term with 35-year amortization. Ross and Briscoe also were part of this deal team.
“The quality of the project and sponsorship, along with the asset profile, fit the target box for many capital sources, but HUD was able to provide the best combination of leverage, rate and amortization,” said Wurtzebach. “Many people think of the 223(f) program as being reserved for nonprofits or affordable housing, but it can actually provide some of the most competitive fixed-rate financing available for market-rate properties.”
Located on Milwaukee Avenue just south of Chicago Avenue, Avenir, which was completed in 2019, is part of a boom in apartment development in River West in recent years. The transit-oriented development (TOD) located steps from the Chicago Blue Line station was designed by Antunovich Associates and includes 196 rental units, 83 garage parking spaces and 32,558 square feet of commercial space. Apartments feature plank flooring, floor-to-ceiling windows and stainless appliances. Many units have private balconies, and some studios have Ori robotic furniture in select units that allows residents to transform the space from bedroom to office to living room at the touch of a button. Avenir’s fifth-floor amenity level includes an outdoor pool with hot tub, cabanas, fire pits and grilling stations; a 24-hour gym and yoga studio; and a party room and demonstration kitchen. The top-floor coworking lounge provides shared workspace as well as private offices.