CIG Secures $56.4M Construction Loan to Convert Downtown Office Tower into 162 Apartments
A Greater Cincinnati developer has closed a construction loan to convert a downtown office tower into a new apartment community, a move that adds momentum to a wave of office‑to‑residential projects in Cincinnati and major U.S. cities. The proposed conversion at 36 E. Seventh St. is budgeted at $56.4 million and will transform a 27‑story former office building into a 162‑unit community called Avant. Construction has already started and the developer expects the residential units to reach the market next year.
Why this project matters now
Urban centers are facing a combination of high office vacancies and ongoing housing shortages. Adaptive reuse of underused office buildings is increasingly seen as a practical, if complex, response. Converting office stock to apartments can add housing supply quickly in dense cores, reuse existing infrastructure, and support downtown revitalization, but it requires tailored financing, regulatory support and design creativity.
Project specifics at 36 E. Seventh St.
The planned Avant community will occupy the former URS office tower and deliver 162 apartments across 27 stories. The developer purchased the office portion of the property in 2024 and has described the project as a landmark development that will contribute to downtown revitalization. Site work is underway and interior and exterior adaptation will move forward under the new construction loan.
How other cities are converting office buildings
Recent examples from several markets show how conversions can vary by scale, financing and local rules:
- Large historic conversion (Chicago) — A century‑old, landmark office tower is being partially repurposed into roughly 226 apartments by renovating underused office floors in a building with historic status. The repurposed units include studios, one‑bedrooms and two‑bedrooms, and about one‑third of those units are planned as affordable housing under a downtown revitalization initiative. Amenity plans include new lobbies, fitness and club spaces, and penthouse terraces with outdoor pools. The work ties into ongoing hotel and hospitality uses already established in other parts of the same structure.
- Mid‑scale downtown tower (Cincinnati) — A former department store headquarters was reopened recently as a 341‑unit luxury apartment tower after nearly a decade of planning and a roughly $73 million redevelopment. That project used a mix of public support tools, including a tax increment financing abatement and a bond issuance, to bridge funding gaps and make the conversion financially feasible. Amenities emphasize rooftop and communal spaces plus coworking suites.
- Historic to luxury mix (Richmond, Va.) — A 1960s office tower is being converted into a 17‑story, 302‑unit luxury apartment building with ground‑floor retail and a robust amenity package that includes a rooftop deck and indoor recreation. Financing includes a unitranche loan and the developers are layering federal and state historic tax credits to improve project economics.
- Large‑scale overhaul (Manhattan) — One of the biggest recent conversions replaced a 1960s office block with a large luxury residential community of over 1,300 units. The project included an expensive multi‑year renovation, a structural overbuild to add floors, facade replacement for increased daylight, and a long list of amenities. A notable portion of the new units are set aside as affordable housing and the project used a special tax exemption to make the conversion viable in an expensive development market.
- Adaptive reuse in Cincinnati — additional work — Other downtown projects include conversions of older office buildings to workforce housing and mixed use. One vacant, aging office is already under adaptation to bring more workforce housing to the urban core. Another developer has filed notices and secured permits to begin a mixed‑use conversion, with crews on site and the first tenants expected in the near term.
Common tools and obstacles
Developers are combining several financing and policy tools: construction loans, unitranche loans, historic tax credits, tax increment financing (TIF) abatements, municipal bond support and long‑term property tax exemptions. Each tool can be critical to closing funding gaps. Major obstacles include retrofitting older mechanical systems, meeting modern residential code and accessibility standards, and securing approvals in different regulatory environments. Some buildings adapt easily to residential layouts; others require structural work or creative floor‑plan redesigns.
Market scale and outlook
Conversion activity is growing. In some metro areas, hundreds to thousands of apartment units are expected to be added through office‑to‑residential projects this year, representing double‑digit increases from recent years. Local officials and developers view these projects as a way to increase downtown populations, support retail and transit, and reuse vacant space without greenfield land consumption. How fast and how broadly conversions proceed will depend on available incentives, capital markets, and whether building stock fits residential needs.
Next steps for the Avant and related projects
The Avant conversion has moved from acquisition into construction with a $56.4 million loan in place and a market introduction planned for next year. Other large projects in the same region are at various stages: some have reopened, some are moving into heavy construction, and others are seeking council approvals or financing. Collectively, the pipeline signals a sustained period of adaptive reuse activity in downtown cores.