“The segmentation of the market has evolved,” Diaz says. “What this type of renter looks for has evolved to become quite sophisticated.”

In addition to preserving many original architectural features, including 15-foot windows, the design utilizes the former warehouse’s 17-foot floor-to-floor ceiling heights and heavy floor loads; Prism is adding a new intermediate second floor and a penthouse level.

The time spent waiting for the market to revive allowed Prism to “do a better, more comprehensive job of putting the essential elements in place, such as security, that go into a lender’s decision,” Diaz adds.

CBRE opted to work with US Bank because of its “ability to do the entire transaction,” Gunning says. With construction now under way, the first residents should be able to move in sometime in spring 2013. Construction will begin on the townhomes comprising the second phase in late 2012, with the first units to be delivered in late 2013.

“It’s a complex construction with a complex schedule,” Diaz says. “Anytime you’re adapting a building built 100 years ago, you have to be creative.”