Financing secured for Wacker Drive construction project

Chicago's current thriving renters' climate could be behind the recent plans announced for an apartment building at a shuttered construction site located on Wacker Drive, downtown. The apartment building will fill the void left when work started and then stopped on a hotel a few years ago. Developer Related Cos. has reportedly secured a loan for the construction.

The site was originally slated to be one of Chicago's largest hotels at 90-stories. Work on the luxury hotel was halted when the structure reached 25- stories and financing ran out. The new 59-story building plans to incorporate the already existing structure. Once complete, it will house 504 units.

U.S. Bank is providing the loan to the developer. The $115 million project is slated to begin in 2013.

Though the economy undoubtedly contributed to the failure of the last project at the Wacker Drive site, it is possible that other issues arose as well. This is because securing the financing for a project of this size is only a part of what needs to be addressed in a commercial real estate venture such as this.

This is actually true of any size commercial real estate venture. The documentation required is often complex and if not handled properly, could lead to legal problems later on. To avoid problems of this sort, lawyers with experience in the field are usually employed.

Hopefully this project will be fully completed and not meet the same fate as the last project undertaken on the site. It would likely be a positive addition for all of downtown.

Source: Chicago Tribune, "Developer gets loan to finish 111 W. Wacker," Ameet Sachdev, Sept. 26, 2012

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