West Loop, Chicago, September 13, 2025
News Summary
A local development team secured roughly $96 million to build a 19‑story, 287‑unit apartment tower at 1221 W. Washington Blvd. The financing package includes a $71.6 million construction loan and $23.9 million in preferred equity. The glass‑and‑brick building will offer studios, one‑ and two‑bedroom units, about 3,000 sq ft of ground‑floor retail and rents starting near $1,799 per month. Targeted for completion in late 2026, the project marks one of few major downtown apartment starts amid tight construction costs and a cautious financing market and could influence future downtown development activity.
Local team secures roughly $96 million to build 19‑story, 287‑unit apartment tower near Fulton Market
A joint venture of local developers has assembled about $96 million in financing to build a 19‑story apartment tower at 1221 W. Washington Blvd., just south of the Fulton Market area. The funding package includes a $71.6 million construction loan from a national bank and roughly $23.9 million in preferred equity from an institutional investor.
What the project will be
The development will deliver 287 apartments across 19 stories, with a mix of studio, one‑ and two‑bedroom homes described by the team as generally smaller in size to create a lower‑cost option for people who want to live near the former meatpacking district turned office and entertainment hub. The building will include about 3,000 square feet of ground‑floor retail and a glass and brick exterior. The developer team is targeting a finish date in late 2026, and market rents are expected to begin at roughly $1,799 per month.
Who is behind the deal
The project is a joint venture among three Chicago development firms working together on the site. One partner serves as lead and noted that pulling together debt and equity for downtown apartment projects has been difficult because of elevated construction costs and a tight financing environment. The lead partner also said the rest of the equity will come from the development team and its partners but declined to confirm the project’s full development cost. Earlier reporting indicated the job was first proposed in 2021 with total costs estimated near $100 million.
Why this project matters now
The tower is one of only a few apartment buildings currently moving forward in the central business district. High building costs and limited financing have kept large ground‑up multifamily projects largely on hold for nearly 18 months until a recent uptick in financing activity. One sizable financing announced in May helped break a prolonged drought, but overall downtown supply remains thin and is not expected to expand meaningfully until later in the decade. At the same time, market data shows net monthly rent at Class A downtown apartment buildings rose more than six percent year over year in the second quarter of 2025, supporting developer confidence in demand.
Related and nearby developments
Several other large projects and transactions are shaping the local apartment picture. One West Loop site under revision now shows a 27‑story mixed‑use tower that would sit above a three‑story podium with a parking garage for around 70 vehicles and a 30,000 square foot community center intended to serve the nearby park. That development team increased the planned count of condominium units, adding multiple four‑ and five‑bedroom condos on upper floors with large outdoor terraces, while keeping a rental playlist of studio to three‑bedroom apartments on midlevel floors. The plan includes a field house with courts for basketball, tennis and pickleball, and a binding agreement is being discussed that would require future owners to keep the community center publicly accessible for a set number of hours with maintenance covered by the developer. Local municipal review and aldermanic approval remain outstanding for that project.
On the investment side, a 35‑story luxury apartment tower of 350 units near Fulton Market and several institutional neighborhoods was reported to be the subject of an acquisition by a large international investor making one of its first moves into U.S. multifamily. That transaction was described as part of a broader plan to seed a U.S. property platform and included plans to partner on energy and decarbonization work. The sale was reported as not yet finalized and could still change. Market observers note that many big apartment towers in recent months traded at lower prices than prior peaks because of higher borrowing costs and a sluggish sales market, creating opportunities for buyers willing to assume some repositioning risk.
A separate downtown apartment community, a 28‑story building with 274 recently renovated units, was marketed and sold as part of an institutional fund’s strategy to capture value after completing unit and amenity upgrades. The seller noted that residential investments made up a meaningful share of its portfolio and that dispositions are a routine part of its capital management approach.
Developer background and city context
The lead firm on the Washington project is a veteran local developer with a track record of multiuse projects in the Fulton Market area and suburban redevelopments that repurpose former mall sites into mixed housing. Other partners include companies that have launched downtown apartment projects recently, and one partner did not respond to requests for comment on this specific project. The development team and its lenders said the combination of tight supply, steady rent growth and neighborhood desirability makes the project viable, even though bringing outside capital up to speed on local market dynamics has been a hurdle.
Reporter background
The coverage was prepared by a commercial real estate reporter who joined a Chicago business publication in 2023 after reporting local real estate for other outlets and who holds bachelor’s degrees from the University of North Carolina at Chapel Hill in media and journalism and in Hispanic literature and culture.
Frequently Asked Questions
What is the total financing for the 1221 W. Washington project?
The development team has secured about $96 million in capital, including a $71.6 million construction loan and roughly $23.9 million in preferred equity.
How many units and what kinds of apartments will the building include?
The tower is planned to include 287 units, mainly studios and one‑ and two‑bedroom apartments, marketed as smaller, more affordable options for the neighborhood.
When will construction finish?
Target completion is set for late 2026, subject to construction pacing and market conditions.
Will there be retail or other nonresidential space?
The project includes approximately 3,000 square feet of ground‑floor retail space.
Is the local housing market supporting new downtown projects?
Demand indicators such as year‑over‑year rent growth for Class A downtown apartments have improved, but high construction costs and a tight lending market have kept many large projects from starting. Some financing deals in 2024 and 2025 show momentum returning, though supply additions are expected to remain limited for a few more years.
Key project features at a glance
| Item | Detail |
|---|---|
| Address | 1221 W. Washington Blvd. |
| Height | 19 stories |
| Units | 287 apartments (studios, 1BR, 2BR) |
| Financing | $71.6M construction loan; $23.9M preferred equity (total ~ $96M) |
| Retail | ~3,000 sq ft ground-floor retail |
| Exterior | Glass and brick |
| Target completion | Late 2026 |
| Projected rents | Starting around $1,799 per month |
| Development team | Local developer joint venture with multiple partners |
Deeper Dive: News & Info About This Topic
Additional Resources
- Crain’s Chicago Business: Chicago developer lists West Loop apartment building sale
- Wikipedia: West Loop, Chicago
- Chicago YIMBY: New details and renderings for 23 S. Sangamon St. in West Loop
- Google Search: 23 S Sangamon Street West Loop renderings
- ConnectCRE: Legal & General acquires West Loop apartment building
- Google Scholar: West Loop apartment financing Chicago
- CoStar: UK firm to buy 350-unit apartment tower in Chicago
- Encyclopedia Britannica: apartment building
- PR Newswire: JLL Income Property Trust sells Chicago West Loop apartment tower
- Google News: 1221 W. Washington West Loop apartment
Author: Construction TX News
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