Concord Capital Secures $19.58 Million Loan For 226 West Ontario Street Conversion In Chicago

226 West Ontario Street is a largely vacant, 113-year-old office building located in Chicago's River North neighborhood. The asset will undergo an adaptive reuse conversion from office to multifamily use, transforming the 48,000 square feet into 70 rental units, which includes 10 units in a planned two-story addition.

Summary of transaction details:

• Property Type: Adaptive Reuse Office-To-Multifamily Conversion
• Transaction Amount: $19,578,000
• Borrower: Concord Capital
• Capital Markets Advisors: Asher Motew & Quinn Keenan - Essex Capital Markets
• Loan Type: Acquisition + Construction
• Loan Terms: 80% LTC | SOFR + 250 Bps | Deferred Equity Contribution

Essex Capital Markets facilitated the financing for the project, arranging the acquisition and construction loan for Concord Capital. The loan was structured at 80% loan-to-cost with full-term interest-only payments and a spread of 250 basis points over the 30-day average SOFR. A local Chicago bank was identified to place the loan, and a two-phase funding structure was negotiated, allowing the sponsor to make an equity contribution during the construction phase instead of at acquisition closing.