The Union Labor Life Insurance Company Commits $25 Million to 19-Story Chicago Multifamily Tower in Fulton Market

CHICAGO — The Union Labor Life Insurance Company has committed up to $25 million in construction financing for a 19-story mixed-use apartment tower at 1221 W. Washington Boulevard in Chicago's Fulton Market/West Loop submarket, the company announced Sept. 2.

The loan was issued through The Union Labor Life Insurance Company's Separate Account J, known as "J for Jobs," and was approved on the condition that all construction be performed with union labor. The project is being developed by a joint venture of Focus, Melrose Ascension Capital, and DAC Developments, with Focus serving as both developer and general contractor.

Project Details and Capital Structure

The development sits on a 20,051-square-foot lot on the south side of Washington Boulevard between Elizabeth Street and Racine Avenue. Upon completion, the building is expected to contain 287 apartment units averaging approximately 615 square feet, with a mix of studio, one-bedroom, and two-bedroom configurations ranging from roughly 430 to 804 square feet. The project also includes approximately 2,678 square feet of ground-floor retail space and 110 parking spaces.

The broader capital structure for 1221 W. Washington totals approximately $96 million. CIBC provided a $71.6 million senior construction loan, and Heitman contributed $23.9 million in preferred equity, with common equity supplied by the development joint venture.

The project was designed by Pappageorge Haymes. Completion is anticipated in late 2026, with initial move-ins expected around early 2027.

Amenities and Unit Specifications

The building is designed to compete at the upper end of the Chicago rental market. Individual units are planned to feature 9-foot ceilings, quartz countertops with undermount sinks, tile backsplashes, stainless steel appliances, luxury vinyl plank flooring, in-unit washers and dryers, individual high-efficiency HVAC units, and walk-in closets.

Shared amenities are expected to include a rooftop pool and deck with grill stations, a spa with hot tub and sauna, a fitness center, private coworking space, a sky lounge, a resident lounge, a dog run, and a secure package system.

"The property is in a prominent location, within walking distance of retail, restaurants, and newer office properties," said Herb Kolben, senior vice president of Ullico Investment Advisors' Real Estate Debt Group. "The generous amenities, coupled with the strategic mix of unit sizes, will make these apartments attractive to a broad range of renters."

Union Labor Requirement and J for Jobs Program

The financing was structured through Ullico's J for Jobs vehicle, which has participated in funding more than 600 real estate projects nationwide totaling in excess of $22 billion since its inception in 1977. The fund targets competitive fixed-income performance for institutional investors over the long term and is offered exclusively to qualified institutional and accredited investors through a group annuity contract issued by The Union Labor Life Insurance Company.

"Unions do good every day by raising wages, securing family-supporting benefits, and making jobs safer and our country's economy stronger. Ullico proudly supports that mission by financing investments that support the labor movement," said Brian J. Hale, CEO and President of Ullico Inc.

Joe Linehan, President of Ullico Investment Advisors, added: "Ullico is known for bringing together expert resources and partners to better meet the needs of institutional and tax-exempt investors. This investment is another example of how our clients and their advisers benefit from the support of a dedicated team of professionals."

Market Context: A Thin Chicago Pipeline

The 1221 W. Washington project is advancing at a time when ground-up multifamily construction in Chicago has been notably constrained. Higher interest rates and elevated construction costs have slowed new starts across the city, making large-scale Class A deliveries in established submarkets relatively scarce. The Fulton Market/West Loop corridor has continued to attract office, retail, and restaurant tenants, providing a demand backdrop that lenders and developers have cited in support of new residential projects in the area.

The Ullico Inc. family of companies includes The Union Labor Life Insurance Company, Ullico Casualty Group LLC, Ullico Investment Company LLC, and Ullico Investment Advisors Inc. Ullico Investment Company LLC is a registered broker-dealer and member of FINRA/SIPC.

Sources: Ullico Inc. — Ullico Invests $25 Million in Chicago Apartment Project