CHICAGO, IL — Construction financing has closed for 410 N. Elizabeth, clearing the way for what developers say will become Chicago's first all-electric, geothermal multifamily high-rise. The 33-story apartment tower will anchor the first phase of a two-building mixed-use development in the city's Fulton Market neighborhood.

Tree Street Group is developing the project with Magellan Development Group and Mark Goodman & Associates. Bank OZK provided the senior construction loan, while Beach Point Capital and Circle Property Partners supplied junior capital.

Geothermal System Anchors High-Performance Design

The first tower will include 383 apartments, including 77 affordable units, with a mix of studio, one-, two- and three-bedroom residences. When both phases are complete, the development will deliver more than 724 apartments, including 146 affordable units.

"Closing on financing for 410 N. Elizabeth is a significant milestone for our team, one that dares to achieve what no one else has attempted—Chicago's first geothermal multifamily high-rise," said Ted Weldon, Principal of Tree Street Group (TSG). "Our ability to move forward on this project underscores the faith of the many parties involved that Chicago is a national leader in sustainable development and a premier market for institutional investment."

The geothermal system will be owned and operated by Infinite Energy Partners, whose investment helped support the project's financing. According to the development team, the building is designed to reduce energy consumption by an estimated 60%, lower emissions by 30% and reduce energy costs by more than 25%.

Additional efficiency measures include a triple-glazed window wall system from Reflection Window + Wall designed to improve thermal performance, reduce outside noise and enhance occupant comfort.

Integrated Delivery Helped Control Construction Costs

Developers said an integrated approach to design, construction and project management helped the project move forward despite challenging market conditions for multifamily development.

According to Tree Street Group Principal Rodrigo d'Escoto, combining those functions under one roof reduced project costs compared to traditional design-bid-build delivery methods.

"Labor and material costs, elevated interest rates—it all contributes to lean profit margins for developers, and without being very creative, these projects just don't make sense financially," said d'Escoto. "Our firm's approach benefits from the integration of design, construction and project management—all of it—under one roof. We call it construction-informed design, and that approach is saving us as much as 15% in costs compared with the traditional design-bid-build projects. That is a significant reason why we were able to secure the necessary capital in an otherwise challenging market."

Project Adds Housing While Supporting Fulton Market Growth

The development team said the project arrives as new apartment construction in Chicago remains limited. The Chicago Apartment Association reported the city recently experienced a 10-year low in apartment deliveries, making 410 N. Elizabeth one of the few high-rise residential projects beginning construction this year.

"Bank OZK is pleased to be the senior lender for this exceptional development, and this financing demonstrates our confidence in the sponsors' ability to execute on their unique vision," said Ako Dickson, Managing Director of Originations at Bank OZK.

J.R. Berger, President of Magellan Development added, "Our firm has a long-standing commitment to Chicago, and we're very excited to be partnering with TSG on this project. 410 N. Elizabeth will not only set a new standard for green building but also signal our continued belief in the positive long-term outlook for Chicago."

Tree Street Group Principal Ed Kruschka credited city officials, including 27th Ward Alderman Walter "Red" Burnett, for supporting the project.

"410 would not be possible without the support of the city and Alderman Burnett, who is a fantastic steward of Fulton Market and a driving force in its ongoing growth and prosperity," he said.

Design Connects Development to Future Transit

Archeo Design Studio is serving as architect of record. The development will feature a gridded façade with metal panels and glazing, ground-floor retail space, and a publicly accessible green space connected by a 30-foot-wide pedestrian street linking Elizabeth Street and Ogden Avenue.

The pedestrian connection will provide access to the planned Fulton Market Metra Station, which is expected to serve residents, commuters and visitors.

Clark Construction Group is serving as general contractor in partnership with Integra-X-Builders, which will provide construction management and geothermal expertise.