CHICAGO - (April 17, 2026)
Draper and Kramer, Incorporated, a national full-service real estate firm, announces a team led by Matt Wurtzebach, senior vice president with the firm’s Commercial Finance Group (CFG), has closed a $64.78 million HUD construction loan on behalf of Riverside Investment & Development for a new 12-story, 199-unit multifamily building at 566 W. Van Buren St. in Chicago’s West Loop. Draper and Kramer, which holds the oldest active HUD multifamily license in the country, is the lender for the construction loan. In addition to Wurtzebach, the deal team included Dave Tomfohrde, Bill Barry, Jeff Ross and Kevan Briscoe.
“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.”
The construction loan through HUD’s 221(d)(4) program has a fixed rate with interest-only payments during construction and converts to a fully amortizing 40-year permanent loan that is open to prepayment without penalty after year 10.
“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,” noted Wurtzebach. “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. Very few groups can bring that level of institutional knowledge to transactions. 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.”
Slated for delivery in 2027, the $85 million project at 566 W. Van Buren St. joins a limited pipeline of approximately 2,100 multifamily units expected to deliver that year, according to Integra Realty Resources. Its West Loop location will put residents a short walk from the Loop and just two blocks from the Chicago River, Union Station, the Old Post Office and new Class A office space like BMO Tower.
For more information on Draper and Kramer’s Commercial Finance Group, visit https://draperandkramer.com/what-we-do/commercial-finance-group/.
About Draper and Kramer, Incorporated
Founded in 1893, Draper and Kramer, Incorporated is a trusted financial and property services provider with a deep commitment to people, excellence, service and integrity spanning more than 130 years. Family-owned and one of the leading privately held real estate services firms in the U.S., Draper and Kramer is headquartered in Chicago with a national reach and broad offering of services. The company’s decades-long heritage has evolved over the years and today spans expertise in residential and commercial development, acquisition, property management and leasing; and debt and equity financing for commercial properties. Draper and Kramer provides a single source of real estate-related counsel to a diverse group of real estate investors across the U.S., including corporations; private and institutional owners and users of real estate; government agencies; and foundations. For more information, visit www.draperandkramer.com.
About the Commercial Finance Group (CFG)
For more than 125 years, Draper and Kramer, Incorporated, has sourced commercial real estate debt and equity used to acquire, develop, renovate, refinance and recapitalize assets across property sectors and markets throughout the U.S. Today, through its Commercial Finance Group (CFG), the company continues that tradition with innovative financing solutions at all levels of the capital stack that are offered to third-party clients and used by Draper and Kramer for its own investments. As a service- and relationship-driven business, CFG prides itself on longstanding partnerships with more than 25 life insurance companies, some of which date back more than a century. For more information, visit www.draperandkramer.com/what-we-do/commercial-finance-group/.
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Editors:
For more information, contact Vanessa Irving, [email protected], (312) 267-4531
Media Coverage:
Draper and Kramer’s Commercial Finance Group has closed a $64.78 million HUD construction loan on behalf of Riverside Investment & Development for a new 199-unit multifamily building at 566 W. Van Buren St. in Chicago’s West Loop. (Rendering provided with permission from Riverside Investment & Development)
