Proposed 19‑story, 287‑unit apartment tower at 1221 W. Washington in the West Loop.
West Loop, Chicago, September 13, 2025
A local development team secured roughly $96 million to build a 19‑story, 287‑unit apartment tower at 1221 W. Washington Blvd. The financing package includes a $71.6 million construction loan and $23.9 million in preferred equity. The glass‑and‑brick building will offer studios, one‑ and two‑bedroom units, about 3,000 sq ft of ground‑floor retail and rents starting near $1,799 per month. Targeted for completion in late 2026, the project marks one of few major downtown apartment starts amid tight construction costs and a cautious financing market and could influence future downtown development activity.
A local development team has closed a financing package of about $96 million to build a 19‑story apartment tower at 1221 W. Washington Blvd, just south of the Fulton Market area. The developers obtained a $71.6 million construction loan and about $23.9 million in preferred equity to move the project forward. The building is planned to include 287 rental units, ground‑floor retail and a glass-and-brick exterior, with completion targeted for late 2026.
The project is a joint venture led by three Chicago‑based development firms. The construction loan comprises the largest portion of the capital stack, while a separate investor supplied preferred equity. Additional equity will be contributed by the development partners and their private partners to fill out the financing package. Developers declined to disclose the full final development cost but earlier planning documents estimated the project around $100 million when it was first proposed in 2021.
The 19‑story tower will feature a mix of studios, one‑ and two‑bedroom apartments described as generally on the smaller side. Floor plans are intended to provide a more affordable option for renters seeking proximity to the former meatpacking district turned office and entertainment hub. Rents are expected to start near $1,799 per month. The ground floor will include roughly 3,000 square feet of retail space, and the building will combine glass and brick on its facade.
The project is among a small number of new apartment buildings currently moving through the downtown construction pipeline. High materials and labor costs along with a difficult lending environment have slowed new starts in the central business district and nearby neighborhoods. After an almost year‑and‑a‑half drought for major ground‑up projects securing financing in the downtown area, a large financing deal announced in May broke that dry spell and signaled renewed, if cautious, lender interest. Still, industry watchers expect meaningful increases in new supply to remain limited until at least 2027.
Demand signals have strengthened. Net monthly rents at Class A apartment buildings downtown showed notable year‑over‑year gains in the second quarter of 2025, supporting the development team’s optimism that tenants will continue to seek centrally located apartments despite tight new supply.
The lead developer has a long local track record that includes mixed projects in the Fulton Market area and suburban mall redevelopments that added hundreds of apartments. Partners on this venture have recently broken ground on another 19‑story apartment tower elsewhere downtown, demonstrating continued commitment to the urban rental market despite financing headwinds.
Separately, updated plans for a 27‑story mixed‑use tower at 23 S. Sangamon St. were posted on March 6, 2025, showing a revised unit mix and a significant community amenity package. The taller building would sit over a three‑story podium that includes a roughly 70‑space parking garage and a 30,000‑square‑foot community center intended to serve the neighborhood park across the street. The revised plan shifts some apartments to condominiums and adds a rooftop field‑house on the podium for sports courts.
On the investment side, a large, 35‑story luxury apartment tower built in 2015 near the Illinois Medical District and the University of Illinois campus has been placed under contract by an international investor as part of a wider U.S. real estate equity strategy. That transaction, which involves an energy and decarbonization partner, remains subject to closing and market conditions. Meanwhile, an institutional real estate trust announced a sale of a 28‑story, fully renovated apartment community downtown as part of a capital‑recycling strategy.
The West Loop project at 1221 W. Washington will add mid‑tier rental options near one of the city’s most desirable neighborhoods for employers and restaurants. If completed on schedule, it will be one of the relatively few new apartment towers delivered downtown in the current development cycle. Developers say assembling capital stacks for projects of this scale remains challenging, but continued rent growth and limited new supply underpin their decision to move forward.
The project closed a roughly $71.6 million construction loan plus about $23.9 million in preferred equity, creating a combined financing package of approximately $96 million.
The planned building includes 287 units, with a mix of studios, one‑ and two‑bedroom apartments that are generally smaller in size.
Targeted completion is late 2026, assuming construction and financing progress as planned.
The project will include about 3,000 square feet of ground‑floor retail. Nearby, another local proposal includes a 30,000‑square‑foot community center with programming to be coordinated with the neighborhood.
It represents one of the few new apartment ground‑up projects currently advancing downtown and reflects growing developer confidence in rent recovery despite financing constraints.
| Feature | Detail |
|---|---|
| Address | 1221 W. Washington Blvd |
| Stories | 19 |
| Units | 287 apartments |
| Capital | ~$71.6M construction loan + $23.9M preferred equity |
| Estimated start/completion | Under construction, targeted completion late 2026 |
| Retail | ~3,000 sq ft ground-floor retail |
| Exterior | Glass and brick |
| Typical rents | Starting around $1,799/month |
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