While he’s not thrilled to be back to cold weather after a trip to Naples, Fla., Associated Bank SVP and Chicago market manager Greg Warsek was happy to share his market outlook. The bank did $1.3B in new loan production last year ($500M out of Chicago), and is projecting significant growth--$1.5B to $1.6B this year (with $750M in Chicago). The pipeline is full thanks to economic improvement and job growth, Greg says, with the most active Chicago area lending in multifamily (40% of business last year), retail (25%), and industrial and office (25%).
Downtown apartment overbuilding could be a stumbling block, but so far everything the bank has financed is beating projections for rental rates and absorption, he tells us. Infill locations in the city and 'burbs are the place to look for retail redevelopment opportunities, as well-located projects that went bust cycle back onto the market. Greg says the most interesting deals have been adaptive reuse, with commercial buildings being converted to multifamily, student housing, self-storage, and mixed use. Last year the bank provided a $20M construction loan for Webster Square, Sandz Development’s mixed-use redevelopment (above) of the former Lincoln Park Hospital, which includes apartments, grocery, condos, parking, and townhomes.
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