Vista Property scored $173 million in financing to begin work on an apartment tower in Fulton Market.
The funds come from a $151 million construction loan from CIBC and a $22 million preferred equity investment from PGIM Real Estate. The loans equate to $350,000 per unit. Cushman & Wakefield represented Vista in securing the CIBC loan.
The 31-story tower will include 494 units and over 45,000 square feet of amenities. It is replacing the former Fox Deluxe Foods building at 370 North Morgan and is expected to be completed in the Spring of 2027.
Chicago-based Skender is the general contractor, and Antunovich Associates designed the building. DeSimone is the structural engineer.
Fulton Market emerged as an office and dining hot spot but has more recently become one of the few neighborhoods in the city experiencing aggressive multifamily growth.
Vista’s financing comes as the rest of the city experiences a historically dry multifamily development pipeline. Only about 500 units are expected to come online in downtown Chicago this year, down from the 10-year average of more than 3,500 units, according to Integra Realty Resources.
Demand in Fulton Market is driven by the former meatpacking district’s evolution into a hub for warehouse-style office, retail and hospitality spaces. Until recently, multifamily development had been lagging behind other commercial uses in the area.
Vista isn’t the only developer eyeing the need to re-balance the neighborhood’s offerings.
At nearby 1200 West Fulton, Alex Najem’s firm Fulton Market Companies, along with Chicago-based JDL Development, are building a two-tower apartment complex with over 1,000 units and ground-floor retail.
That development is getting back on track after it was previously slated for life sciences offices. Najem scrapped those plans after it became evident that the life sciences market was over supplied.