Draper and Kramer Closes $64.78M HUD Construction Loan for 199-Unit Multifamily Development in Chicago's West Loop

CHICAGO — Draper and Kramer's Commercial Finance Group (CFG) has closed a $64.78 million HUD construction loan on behalf of Riverside Investment and Development for a new 12-story, 199-unit multifamily building at 566 W. Van Buren St. in Chicago's West Loop, the firm announced April 17, 2026. The financing was structured through HUD's 221(d)(4) program, with Draper and Kramer serving as the lender.

The deal was led by Matt Wurtzebach, senior vice president with Draper and Kramer's Commercial Finance Group, alongside team members Dave Tomfohrde, Bill Barry, Jeff Ross and Kevan Briscoe. The total project cost is approximately $85 million.

HUD 221(d)(4) Financing Structure

The construction loan carries a fixed interest rate with interest-only payments during the construction phase. Upon completion, the loan converts to a fully amortizing 40-year permanent loan that is open to prepayment without penalty after year 10.

"In today's equity-constrained environment, this deal illustrates how HUD's 221(d)(4) program can provide developers favorable leverage and economics that allow projects to pencil and move forward," said Wurtzebach. "There are many positives about this development that made it attractive to us from a lending perspective, from its desirable live/work/play West Loop location to Riverside's reputation as a developer and the lack of new multifamily deliveries in Chicago — a trend that has supported strong rent growth."

Wurtzebach also noted that while HUD loans typically require a longer lead time than conventional financing, that tradeoff is offset by more favorable terms. "The tradeoff for loans in this program is they typically require a longer lead time, but that's offset by terms that are significantly better than what borrowers could secure through other lending sources," he said. "Relative to other HUD lenders, we have really developed an expertise in larger, Class A ground-up developments. We know that space incredibly well — as a lender, an owner and a capital markets advisor."

Draper and Kramer holds what it describes as the oldest active HUD multifamily license in the country.

West Loop Location and Chicago Multifamily Supply Context

The project at 566 W. Van Buren St. is situated in Chicago's West Loop submarket, placing future residents within walking distance of the Loop, the Chicago River, Union Station, the Old Post Office and Class A office buildings including BMO Tower.

According to data from Integra Realty Resources cited in the announcement, approximately 2,100 multifamily units are expected to deliver in Chicago in 2027. The 566 W. Van Buren project joins that pipeline, with delivery targeted for 2027.

"566 W. Van Buren will be a beautiful addition to the West Loop, and we are grateful to have worked with Riverside's exceptional development team," Wurtzebach added.

About the Firms Involved

Draper and Kramer, Incorporated is a Chicago-based, family-owned real estate services firm founded in 1893. The company's Commercial Finance Group sources debt and equity for commercial real estate acquisitions, development, renovation, refinancing and recapitalization across property types and markets throughout the United States. CFG maintains relationships with more than 25 life insurance companies, some dating back more than a century.

Riverside Investment & Development is the developer on the 566 W. Van Buren project. The firm was not separately described in the announcement beyond its role in this transaction.