Multifamily construction funding comes as tight lending and high construction costs limit rental pipeline
Bradford Allen’s large-scale suburban Chicago project recently got the go-ahead from city officials and, more crucially, a lender, overcoming constrictions on the area’s multifamily pipeline resulting from a tight lending environment and high construction costs.
Chicago-based brokerage Bradford Allen’s investment arm landed a $72 million construction loan from Walker & Dunlop last month, allowing the developer, along with design partner Moceri + Roszak, to begin construction on a 301-unit apartment complex with 26,000 square feet of ground-floor retail, public records show. Construction is expected to be completed by July 2026.
The apartment complex is the first component of a $130 million mixed-use campus, set to become an improved gateway to Arlington Heights, that will include a medical office at the site of the former Daily Herald newspaper building, and at least two other retail buildings.
The village of Arlington Heights approved $17.8 million in tax increment financing last month to support Bradford Allen and Moceri + Roszak’s $130 million master planned community.
The development team has been assembling land for the 16-acre development at the southeast corner of Arlington Heights and Algonquin roads since 2019.
Development of the 8-story residential building will kick off the first phase of a four-part plan to reshape the tract, near the Jane Addams Tollway, a project expected to take up to eight years. Even though zoning was approved and demolition completed, construction was delayed until the public funding was secured, along with the construction loan.
