Chicago Multifamily Developers Secure $293M in Loans Amid Sluggish Construction Pipeline
Two major downtown Chicago multifamily developments have secured significant loans to support their construction. Convexity Properties and Mavrek Development each landed nine-digit loans for their projects, which are set to bring a combined total of over 680 new apartments to the city.
Convexity's loan, totaling $162.8 million, was provided by JPMorgan Chase Bank and will back a 28-story, 304-unit apartment building in the Gold Coast at 7 West Elm Street. Mavrek's loan, worth $130.4 million, comes from an Affinius Capital affiliate and is supporting a 25-story, 380-unit complex in the West Loop at 1000 West Jackson Boulevard.
The construction pipeline for new apartment units in Chicago remains sluggish, with only 843 new apartments delivered so far this year. However, despite these constraints, several developers are finding creative ways to adapt existing buildings into residential spaces, with Mavrek currently converting the historic office building at 65 East Wacker Place into a 252-unit luxury complex.