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Marc Realty closes on $27M loan for mixed-use conversion
Partner LG Development signed a 32-year ground lease on the historic Loop office tower
Marc Realty scored a $27 million construction loan from Regions Bank for its residential conversion of a historic Loop office building.
Marc’s partner on the project, LG Development Group, also signed a 32-year ground lease on the building, according to a memorandum recorded with the county.
Marc filed plans to convert the nearly century-old Insurance Center Building at 330 South Wells Street last year, intending to put in 132 residential units plus ground-floor retail. A small office portion would be retained.
LG signed on as general contractor from the beginning. But now the Chicago-based firm — a developer and landlord in its own right, with residential holdings throughout the city — is now poised to take a larger role at the building once construction is finished.
Marc and LG plan to take advantage of the federal Historic Tax Credit, a program meant to encourage rehabs of older buildings with historic significance.
The memo states that LG’s lease will commence when the building is “placed in service for the purposes of the Historic Tax Credits.”
LG and Marc did not immediately respond to a request for comment.