Downtown Chicago Apartment Projects Secure Significant Construction Loans
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Downtown Chicago Apartment Projects Secure Significant Construction Loans
- Two major apartment developments in downtown Chicago, located in the Gold Coast and West Loop neighborhoods, recently secured substantial construction loans totaling nearly $300 million.
- Convexity Properties received a $162.8 million loan from JPMorgan Chase Bank for a 28-story, 304-unit building at 7 West Elm Street, while Mavrek Development secured $130.4 million from an Affinius Capital affiliate for a 25-story, 380-unit complex at 1000 West Jackson Boulevard.
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Chicago’s downtown real estate market is seeing a significant influx of capital for new apartment construction, with two major projects in the Gold Coast and West Loop securing nearly $300 million in construction loans. This marks a notable shift in the lending environment, which has been constrained in recent years due to investor concerns about the city and fluctuating interest rates.
Convexity Properties obtained a $162.8 million construction loan from JPMorgan Chase Bank for its 28-story, 304-unit apartment building at 7 West Elm Street in the Gold Coast. Demolition of previous structures on the site, including a former Barnes & Noble and a Lou Malnati’s restaurant, has already occurred, and general contractor W.E. O’Neil is poised to begin construction. The project will include retail space and 132 parking spaces.
Meanwhile, Mavrek Development secured a $130.4 million construction loan in August from an Affinius Capital affiliate for a 25-story, 380-unit apartment complex at 1000 West Jackson Boulevard in the West Loop. This project is expected to break ground soon and has an estimated cost of around $170 million. Mavrek is also involved in adaptive reuse projects, converting office spaces into residential units, such as 65 East Wacker Place into a 252-unit luxury apartment complex.
These substantial loans come amidst a sluggish construction pipeline for new apartment units in Chicago. Only 843 new apartment units have been delivered so far in 2026, with just 861 more anticipated by year-end. A significant portion, 44%, of the apartments delivered in 2026 have resulted from adaptive reuse projects. The limited new supply has contributed to rising rents across the city. Other projects in Chicago have also secured financing in 2025 and 2026, including a 199-unit West Loop tower by Riverside Investment & Development with a $64 million HUD loan, and a 287-unit West Loop project by Focus, Melrose Ascension Capital, and DAC Developments with approximately $96 million in financing.