CHICAGO, ILLINOIS — Essex Capital Markets, LLC is pleased to announce the successful arrangement of a $2,950,000 acquisition loan for 222 S. Morgan Street, a five-story timber-loft office building located in Chicago’s West Loop and Fulton Market area.
The financing supports the acquisition and pre-development phases of the sponsor’s planned conversion of the property into a 47-unit residential development.
Transaction Summary
| Property | 222 S. Morgan Street, Chicago, Illinois |
|---|---|
| Submarket | West Loop / Fulton Market |
| Existing Property Type | Five-Story Timber-Loft Office Building |
| Planned Redevelopment | Office-to-Residential Conversion |
| Planned Residential Units | 47 Units |
| Loan Type | Acquisition and Pre-Development Financing |
| Loan Amount | $2,950,000 |
| Lender Type | Regional Bank |
| Loan Structure | Floating Rate, Interest Only and Limited Recourse |
| Transaction Team |
Director Quinn Keenan Director Asher Motew |
Financing Overview: West Loop Office-to-Residential Conversion
On behalf of the sponsor, Essex Capital Markets secured financing through a regional banking partner that recognized the property’s long-term residential potential rather than relying solely on its current office occupancy.
The floating-rate, interest-only facility was structured to provide flexibility throughout the pre-development period while aligning with the sponsor’s redevelopment timeline. The limited-recourse structure also supported the acquisition without requiring the sponsor to accept a traditional full-recourse guarantee.
The transaction was facilitated by Directors Quinn Keenan and Asher Motew.
“This wasn’t a stabilized asset a bank could underwrite off a rent roll,” said Director Asher Motew. “You’re asking a lender to lend against what a vacant office building is going to become, not what it is today. We closed with a relationship lender who knew this sponsor and understood the business plan, and we did it on a limited-recourse structure, which is not a given on a pre-construction acquisition.”
West Loop and Fulton Market Adaptive Reuse Market
The West Loop and neighboring Fulton Market continue to evolve as two of Chicago’s most active mixed-use neighborhoods. The area combines historic industrial architecture with residential development, offices, restaurants, retail, entertainment, and convenient access to downtown Chicago. Learn more through the Choose Chicago West Loop neighborhood guide.
As demand for well-located housing remains strong, thoughtfully repositioning existing office buildings into residential communities has become an increasingly relevant strategy for experienced developers seeking to capitalize on the neighborhood’s long-term fundamentals.
Essex Capital Markets Transaction Team
This transaction highlights Essex Capital Markets’ ability to secure financing for projects that require lenders to underwrite future potential rather than existing cash flow.
Whether financing adaptive reuse developments or traditional multifamily investments, the firm continues to deliver strategic capital solutions and dependable execution across Chicago’s most active investment markets.
Work With Commercial Real Estate Financing Advisors
Essex Capital Markets helps commercial real estate owners, investors, and developers evaluate capital sources and structure financing for acquisitions, pre-development projects, adaptive reuse opportunities, construction projects, and stabilized investments.
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About Essex Capital Markets
Essex Capital Markets is a Chicago-based commercial real estate capital advisory firm providing debt placement and financing solutions for investors, owners, and developers. Through extensive lender relationships and a disciplined market process, the firm helps clients secure financing structures aligned with their business plans and long-term investment objectives.