The historic Hartman Building in the heart of the Chicago Loop is gearing up for a total makeover. Walker & Dunlop has recently secured $44.7 million in financing for a green adaptive reuse project that aims to turn the iconic office building into a mixed-use complex.
The commercial real estate company placed the loan with the United States Department of Housing and Urban Development’s (HUD) 221(d)(4) program. Walker & Dunlop acted on behalf of Cedar Street Cos., a Chicago-based developer, for which it also obtained HUD’s green mortgage insurance premium (MIP). Through it, the property at 30 East Adams St. becomes the first mixed-use project to ever receive such benefits.
The granted loan allows Cedar Street to capitalize on the savings made from the existing historic tax credits. The financing is fully amortizing, with the rate locked in over a 40-year term, with two years of interest-only payments.
The 136,800-square-foot landmark will be turned into a 176-unit multifamily community with ground-level retail. Constructed in 1923, the Class B Chicago office building has among its tenants a McDonald’s restaurant and the 83-year-old Miller’s Pub, one of the most famous places in the Windy City. After the completion of the adaptive reuse program, the property will have, in addition to the housing units, a rooftop deck and a fitness center. A new retail outlet will be located on the ground floor, right next to the two above-mentioned tenants, which will keep their spaces.
The iconic building at 30 East Adams Street is a transit-oriented property located in the immediate vicinity of an L Train stop and close to various shopping and cultural attractions. The asset, originally designed by Alfred Alschuler, is rated as a ‘Walker’s Paradise’ and ‘Very Bikeable.’