Monday Market Moves | Week of 16 June 2025
Welcome to Monday Market Moves, the weekly series from Essex Capital Markets briefing you on Chicago commercial real estate capital markets. We cover key trends in CRE debt, refinancing, and capital structures to help investors, borrowers, and lenders navigate today’s evolving environment.
This Week: Chicago Update: Multi Family Lenders & CRE Trends
At Essex Capital Markets, we focus on the needs of mid-market owners, developers, and borrowers. This week’s Chicago headlines underscore how public infrastructure and policy alignment are helping unlock momentum—backed by a steadier rate environment that’s making capital easier to price.
Midway Airport: $47M Runway Rehab Underway
Chicago has launched a $47 million overhaul of Runway 13C/31C at Midway—the largest airport infrastructure project active this year. Overseen by the Department of Aviation and led by K-Five Construction, the project includes safety upgrades, reconfigured taxiways, and a new emergency access road. This comes as Chicago airports are expected to serve a record 17.8 million seats this summer, indicating a surge in air traffic. While it’s early to quantify real estate impacts, improvements like this—and the city’s broader infrastructure push—are helping lay groundwork near major transit corridors.
The 78: Another Public-Backed Mega-Project Breaks Ground
Also breaking ground this month is The 78, a $7.2B mixed-use development on the riverfront. Backed by $1.1B in public infrastructure funds, it marks another step in Chicago’s long-term effort to activate underutilized land via transit, roads, and civic investment.
Together, these efforts illustrate a broader story: infrastructure dollars are flowing, and private CRE players—especially in the mid-market—can find opportunity by tracking where public resources are concentrated.
Roosevelt Square Phase 3B: Mixed-Income Milestone
Phase 3B of Roosevelt Square is now complete, adding 207 mixed-income apartments (75 public, 40 affordable, 92 market-rate) & 10,000 sq ft of ground-floor retail. Total project cost: $172M, including $101M in public support & $76.25M in bond financing.
For developers working in that $20M–$100M deal range, this is a clear signal: when public-private alignment exists, creative capital stacks can still bring deals across the finish line.
Rates Update: A More Predictable Playing Field
Over the past two weeks, Treasury yields have remained in a tighter band.
5-year Treasury: ~4.00%
10-year Treasury: ~4.40%
That stability is encouraging mid-market borrowers to re-engage. Fixed-rate pricing is clearer, and lenders are quoting more consistently—especially for 5-year holds and repositioning strategies.
What We’re Watching
– Airport infrastructure + record traffic volumes may revive investment interest in nearby retail, hospitality, and logistics
– Mixed-income housing deals like Roosevelt Square show the power of layered capital in today’s market
– A flatter, steadier yield curve is helping mid-market sponsors return to the table with confidence
At Essex Capital Markets, we’re helping clients navigate this environment by structuring smart, strategic capital solutions that align with both current realities and long-term goals—across acquisitions, refinances, and recapitalizations.
To speak with our Capital Markets team about how multi family lenders are approaching today’s market, please fill out the form below.