It would also be difficult to find a better location. A number of developers have either recently started or finished new residential towers in the vibrant city's South Loop area. Its proximity to both the CBD and the lakefront's parkland have combined to make it one of the most desirable neighborhoods for luxury rentals.

“We are believers in the continued and growing attractiveness of 'walk to work and walk to play' downtown living for people across the demographic spectrum,” says John W. Rutledge, founder, president and chief executive officer of Oxford, the Chicago-based, national developer, sponsor and manager.

Along with Hirt, Jordan Ray, Steven Buchwald and Jamie Matheny of Mission helped secure the financing.

“This is a complex, large-scale hotel and apartment project in a highly-competitive market,” says Ray. “Despite the size and complexity, we were able to generate interest from multiple lenders who were willing to provide full-stack financing on a non-recourse basis.”

“We know the capital sources that are willing to these deals,” adds Hirt. Although more difficult, with a solid development team “and a well thought out business plan, you can get it done.” In the last quarter, the firm has completed three similar deals at or around $100 million for mixed-use, ground-up construction projects.

The market seems to have a good bit of momentum right now, according to Hirt, but if the Fed follows through with interest rate increases in the coming year, enthusiasm may dampen. “If people want to get these deals done, now is the time.”

CHICAGO—Officials representing a partnership of Oxford Capital Group, LLC and Quadrum Global say they have secured a $170-million loan to finance the construction of Essex on the Park, a new 56-story, 479-unit luxury apartment building at 808 S. Michigan Ave. As part of the project, the partners will also by 2019 expand and upgrade the adjacent Essex Inn at 800 S. Michigan Ave., a historic, 254-room independent hotel, to a 271-room luxury hotel called Hotel Essex.

In a mark of confidence, the developers secured non-recourse financing, meaning the lender can only get repayments from the proceeds of this particular project, not other assets. Mission Capital Advisors advised ownership and ran point in sourcing the financing from a global investment bank.

“Many lenders, banks in particular, typically require recovery on construction loans due to their riskier nature,” Ari Hirt, of the New York-based firm tells GlobeSt.com. That is especially true for mixed-use projects such as the Essex. Many lenders “only want to do apartments and others just want to do hotels.”

But in this case, he adds, the lender strongly believed both in the project, and the abilities and experience of the team behind it, including the developers, architect and general contractor. “That gave us the ability to find financing for it,” Hirt says.

It would also be difficult to find a better location. A number of developers have either recently started or finished new residential towers in the vibrant city's South Loop area. Its proximity to both the CBD and the lakefront's parkland have combined to make it one of the most desirable neighborhoods for luxury rentals.

“We are believers in the continued and growing attractiveness of 'walk to work and walk to play' downtown living for people across the demographic spectrum,” says John W. Rutledge, founder, president and chief executive officer of Oxford, the Chicago-based, national developer, sponsor and manager.

Along with Hirt, Jordan Ray, Steven Buchwald and Jamie Matheny of Mission helped secure the financing.

“This is a complex, large-scale hotel and apartment project in a highly-competitive market,” says Ray. “Despite the size and complexity, we were able to generate interest from multiple lenders who were willing to provide full-stack financing on a non-recourse basis.”

“We know the capital sources that are willing to these deals,” adds Hirt. Although more difficult, with a solid development team “and a well thought out business plan, you can get it done.” In the last quarter, the firm has completed three similar deals at or around $100 million for mixed-use, ground-up construction projects.

The market seems to have a good bit of momentum right now, according to Hirt, but if the Fed follows through with interest rate increases in the coming year, enthusiasm may dampen. “If people want to get these deals done, now is the time.”