CHICAGO, ILLINOIS — Chicago-based commercial real estate finance advisory firm Essex Capital Markets, LLC is pleased to announce the successful arrangement of a $19,578,000 acquisition and construction loan for the redevelopment of 226 W. Ontario Street in Chicago’s River North neighborhood.
Transaction Summary
- Transaction Type: Acquisition and Construction Loan
- Address: 226 W. Ontario Street, Chicago, Illinois
- Submarket: River North
- Property Type: Office-to-Residential Conversion
- Loan Amount: $19,578,000
- Lender: Local Bank
- Loan Structure: 80% Loan-to-Cost, Full-Term Interest Only
- Project: Conversion of an existing office building into a 70-unit residential property
- Transaction Team: Directors Quinn Keenan and Asher Motew
Financing Overview: Office-to-Residential Conversion in River North
The financing will support the acquisition and redevelopment 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 align with the project’s acquisition and construction timeline. The financing includes an 80% loan-to-cost ratio, full-term interest-only payments, and the flexibility needed to execute a complex adaptive reuse redevelopment.
River North Adaptive Reuse Financing
River North remains one of Chicago’s most dynamic urban neighborhoods, where continued demand for high-quality residential housing has fueled interest in adaptive reuse projects. As office properties are repositioned to meet evolving market demand, thoughtfully executed conversions continue to play an important role in adding new housing while preserving the character of the area’s historic building stock.
“This was not a standard construction loan,” said Director Asher 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.”
Essex Capital Markets Transaction Team
This transaction was facilitated by Directors Quinn Keenan and Asher Motew.
This financing demonstrates Essex Capital Markets’ ability to structure capital solutions for complex redevelopment opportunities by pairing experienced sponsors with lenders that understand both the asset and the business plan. From adaptive reuse projects to stabilized multifamily portfolios, the firm continues to deliver strategic financing solutions across Chicago’s evolving commercial real estate market.
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Whether you’re financing an acquisition, construction project, adaptive reuse development, or refinancing an existing asset, Essex Capital Markets provides tailored debt advisory services designed to meet your investment objectives. To connect with our team, please fill out the form below.
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About Essex Capital Markets
Essex Capital Markets, LLC is a Chicago-based commercial real estate finance advisory firm specializing in debt and equity placement for multifamily, mixed-use, office, retail, industrial, and specialty real estate throughout the Midwest. By leveraging deep lender relationships and extensive market knowledge, the firm delivers customized capital solutions that help clients achieve their investment goals.