Third Coast, ZSD Snag $44M Construction Loan for Apartments

A River North parking lot that has cycled through condo and office dreams is finally getting a firm plan.

A joint venture of Chicago-based firms Third Coast Real Estate and ZSD landed $44 million in construction financing for a nine-story, 149-unit apartment project at 300-324 West Huron Street, a site that has sat largely untouched for a decade, Crain’s reported. JLL arranged the capital stack, which includes a three-year, $38.1 million construction loan from CIBC and $6 million in preferred equity from N3 Capital Management.

The total development cost is pegged at $57 million.

The project is breaking ground as downtown Chicago’s multifamily pipeline has thinned to a trickle. Just three major apartment developments totaling fewer than 600 units are slated for completion in 2026, according to Integra Realty Resources. The publication reported that with debt and equity markets still tight, that scarcity has helped push rents higher and given well-capitalized sponsors an opening.

Third Coast founder Reed Edwards said the venture is betting its March 2027 completion will align with continued strength in Chicago’s rental fundamentals. Translation: fewer cranes today could mean pricing power tomorrow.

The development will rise on a full-block surface lot along Huron Street between Orleans and Franklin streets. ZSD, led by Zev Salomon, bought the land for $9 million from North Wells Capital, which had previously planned a 260,000-square-foot office building before shelving the proposal amid pandemic-era office fallout. At one point, another developer had approvals for a 24-story condo tower, but that plan also fizzled.

Unlike many recent city projects, the West Huron development is proceeding under existing zoning, according to the outlet. That means it sidesteps Chicago’s Affordable Requirements Ordinance, which mandates that developers seeking zoning changes set aside 20 percent of units as affordable or pay an in-lieu fee.

Plans call for a mix of studio, one-bedroom and two-bedroom apartments, along with roughly 3,700 square feet of ground-floor retail and 21 parking spaces.

— Eric Weilbacher