BridgeCity Capital Supplies $69M Construction Loan for Chicago Resi Tower

A joint venture between DAC Developments and Melrose Ascension Capital has landed $69 million of construction financing to build a multifamily tower in Chicago, Commercial Observer has learned.

BridgeCity Capital provided the bridge loan for the developer’s planned 19-story luxury apartment building with ground floor retail in Chicago’s South Loop neighborhood. Construction of the 223,000-square-foot, 164-unit project at 626 South Wabash Avenue commenced in April nearly three years after receiving building permits, Urbanize Chicago reported last month. 

EJ Ehrlich, senior analyst with BridgeCity, said the lender was drawn to the project from a lending perspective due to demand for rental apartments in the South Loop area. He also noted that Daniel Rezko, president of DAC Developments, and Nick Melrose, CEO of Melrose Ascension Capital, have a strong track record, including a recent completion of other Chicago multifamily developments at 808 North Cleveland Avenue, 633 South LaSalle  Street and 808 North Cleveland Avenue.

“Their clear vision, thoughtful design approach, and strong basis made this an attractive deal to finance,” Ehrlich told CO. 

Located less than a half-mile from Downtown Chicago in a previously vacant lot, the 626 South Wabash project will include a 73-space parking garage and 3,160 square feet of retail space. Community amenities will include bicycle storage, a roof deck with swimming pool, a fitness center and a business center. 

Officials at DAC Developments did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.