Tandem Development has secured a total of $114 million in construction and refinancing loans for two mixed-use properties in Chicago. Draper and Kramer’s Commercial Finance Group arranged the loans on behalf of the borrower.
Tandem received a $58.4 million construction loan for the development of 1044 West Van Buren, an 18-story mixed-use project in Chicago’s West Loop. Draper and Kramer originated the non-recourse loan for the development through the HUD 221 (d) program, with a 40-year term and a 40-year amortization period at 78% loan to cost.
Scheduled for completion by the second quarter of 2023, the mixed-use community will feature 196 units and 1,775 square feet of first-floor retail space. Antunovich Associates is the designer of the development, which will include amenities such as a rooftop-level fitness center and yoga studio and a coworking lounge with private offices.
HUD Loans for Market-Rate Properties
The development firm also obtained a $55.6 million non-recourse construction loan refinance for Avenir Apartments through HUD’s 223(f) program, with a 35-year term and amortization period.
While most people believe that the 223(f) program is reserved for nonprofits or affordable housing, this loan option can provide competitive fixed-rate financing for market-rate properties, according to a prepared statement from Draper and Kramer’s Senior Vice President Matt Wurtzebach, who led the team originating the loans.
Located at 730 N. Milwaukee Ave. in the River West neighborhood, Avenir also comprises 196 units and more than 30,000 square feet of commercial space. The property is a transit-oriented development located adjacent to a Chicago Blue Line L station. Tandem completed the asset in 2019 and worked with Antunovich Associates on the design.