Essex Capital Markets Arranges $20M for River North Office Conversion
Essex Capital Markets completed the arrangement of a $19.57 million acquisition and construction loan for the redevelopment of 226 W. Ontario Street in Chicago’s River North neighborhood.
The financing will support the conversion of the existing office building into a 70-unit residential property, including 60 apartments within the existing structure and 10 additional units through a planned two-story vertical expansion.
On behalf of the sponsor, Essex Capital Markets secured financing through a local banking partner, delivering a two-phase funding structure designed to support the project’s acquisition and construction timeline. The financing includes an 80% loan-to-cost ratio and full-term interest-only payments. The transaction was facilitated by Directors Quinn Keenan and Asher Motew.
“This was not a standard construction loan,” said Motew. “The lender had to get comfortable with the conversion of an existing 113-year-old building, the planned vertical addition, and a funding schedule that matched the sponsor’s construction timeline. We found a local bank that understood the project and structured the facility so the sponsor could stage its equity contribution without giving up proceeds.”
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