The loan gives Cleveland-based Forest City Enterprises three years to build the 42-story rental and 11-story senior housing buildings at the northeast corner of Michigan Avenue and 13th Street, as well as lease up the 502 units. The two buildings also will have ground-floor retail space. However, the lead developer of the massive multifamily development in the burgeoning South Loop neighborhood has the ability to tack on an extra two years if needed.

Plans for the $122-million project were endorsed nearly two years ago by the city's community development commission, which is using tax increment financing, low-income housing tax credits and a property tax break to help make the numbers work for Central Station Development Corp. In exchange, the developer pledged to set aside 176 units for renters qualifying under the city's affordable housing initiative.

GMACCM vice president Christopher Blechschmidt of the Chicago loan origination office quarterbacked the loan with affordable housing division vice president Barry Krinsky and construction lending senior vice president Peter Kisluk.