$143M Converts Metropolitan Into Condos

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By Bonnie Grota

CHICAGO-A-$142 million construction loan has been awarded to Louis D. D'Angelo of Metropolitan Properties of Chicago LLC, for the condominium conversion of the 30-story office building and adjacent eight-story building at 310-318 S. Michigan Ave. The two properties will be converted into 248 condominium units.

The 310 building is known as Metropolitan Tower and was built in 1924. It was designed by the architectural firm of Graham, Anderson, Probst & White. When the repositioning is complete, the tower will offer 242 units and four floor plans with varying finishes and price points. The second building, known as Richelieu Flats, will be developed into a six-unit condominium tower. Plans call for the conservation of the building's fa�ade and front one-third of the heavy timber building. Floors one and two will be retail, while floors three through seven will be converted to 2,600-sf, three-bedroom, 3.5-bath condominium units. Each of these condominiums will have its own three-car garage. Floors seven and eight will be combined into a single 6,600-sf. unit. Once finished, amenities will include a 24-hour doorman, a fitness center, event room, secure parking, receiving room, indoor bike storage and dry cleaning pick-up service.

The structures are located in the South Michigan Boulevard Historic District, which was established by the City of Chicago in 2002. The district extends from 11th Street on the south to Randolph Street on the north. The Michigan Avenue "Streetwall" of historic properties date back to the late 19th and early 20th centuries. The historic designation will prevent future building demolition in the immediate neighborhood for new development.

Beacon Realty Capital Inc. arranged financing for the project, and Babcock & Brown provided $26.5 million in mezzanine debt. Fremont Investment & Loan provided the construction loan. Scott Manlin, vice president and regional manager at Fremont, says that to structure the loan the firm underwrote the real estate as well as the issues surrounding adaptive re-use of historic buildings. Fremont then created a loan for a project that includes two historic properties, according to Manlin.