CoStar: Chicago developers begin work on apartment tower amid high demand, few new projects

Firms break ground after landing more than $95 million in financing

Ryan Ori | CoStar

A group of Chicago real estate firms has landed more than $95 million in financing to kick off construction on a 287-unit apartment tower near high-demand Fulton Market, a rare groundbreaking in the city despite high demand and growing rents.

Developer and construction firm Focus announced Friday that it has begun building the long-planned, 19-story tower at 1221 W. Washington Blvd. just south of the former meatpacking district.

Excavation work on the site began about two weeks ago, Focus founder and CEO Tim Anderson said. He said Focus and its partners, DAC Developments and Melrose Ascension Capital, secured $95.5 million in financing to start the project.

The project is one of very few apartment buildings in downtown Chicago’s construction pipeline, as high construction costs and a challenging financing environment have made it difficult for developers to get shovels in the ground for large projects.

Tim Anderson, president and CEO of Focus, said while putting together debt and equity for projects like this one isn’t easy, the development team is confident in Chicago’s strength when it comes to apartment demand and rent growth.

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