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Walker & Dunlop Secures $45M In HUD Financing For Cedar Street Loop Adaptive Reuse

Downtown Chicago Adaptive Reuse Real Estate
Cedar St. is building 176 apartments inside 30 East Adams.

Cedar Street secured a $44.7M Housing and Urban Development loan to reposition an iconic Loop building into market-rate apartments. The Hartman Building, a 12-story building built in 1926 and best known as home of the legendary tavern Miller's Pub, will become 176 market-apartments.

Walker & Dunlop's Carolyn McMullen and Kyle Peterson arranged the financing through HUD's 221(d)(4) program, allowing the developer to capitalize on savings from the existing historic tax credits. McMullen and Peterson also implemented HUD’s green mortgage insurance premium, making this the first-ever mixed-use project to receive such benefits. The fully amortizing loan locked in the interest rate on a 40-year term with two years of interest-only payments.

Adaptive reuse specialist Cedar Street, which helped turn Uptown into an emerging submarket, has been busy closer to the downtown core. Last October, the firm announced plans to adapt the Salvation Army's former West Side Freedom Campus into a mixed-use apartment and retail complex. Earlier this month, the firm delivered 92 loft apartments at the former Otis Elevator factory at 1435 West 15th St. in Pilsen.