Minneapolis-based U.S. Bank has closed on a $115 million construction loan that will kick start one of Chicago’s most anxiously awaited projects.
The bank provided the loan to Related Midwest for the company’s construction of a 504-unit apartment complex at 111 West Wacker Drive in downtown Chicago. The development site was acquired by Related in late July 2011 in a joint venture with Clark Wacker LLC, after previously petering out at 25 stories. Demolition of that portion is underway now.
“In cities all over the country, U.S. Bank is working with customers like Related to get the economy moving again,” said Don Pafford, Chicago commercial real estate manager with U.S. Bank. “We are happy to see this project will move forward and become a significant addition to the heart of Chicago.”
A spokesperson for U.S. Bank declined to provide details about the loan’s terms, but said that the deal was attractive on several fronts.
“We look at the sponsor of the project,” she said. “This project sponsor has a really good history and also Chicago is a really important market to us.”
Related Midwest is a division of New York-based Related Companies, which through a spokesperson also declined to comment on the details of the loan. It has completed several recent developments in Chicago—among them 340 On the Park, 840 North Lake Shore Drive, Park Tower, The Belvedere and The Pearson. The company is also currently developing 500 North Lake Shore Drive.