Mavrek Development Purchased West Loop Property
The firm acquired the 25,000-square-foot site at 850 West Washington Boulevard for $16.5 million.
Updated on Sept. 28, 2026 in Commercial
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Mavrek Development has completed the purchase of a 25,000-square-foot site in Chicago's Fulton Market neighborhood. The acquisition cost $16.5 million, or approximately $660 per square foot.
Why it matters
The firm is moving forward with the acquisition as part of a strategy to address the ongoing shortage of housing in Chicago. This investment reflects a bet on sustained supply and demand imbalances within the local market.
The property at 850 West Washington Boulevard spans 25,000 square feet and is zoned DX-3. Acquisition financing included a $9.5 million mortgage loan provided by Hoyne Savings Bank.
The players
Mavrek Development
This real estate development firm operates in Chicago and focuses on high-density residential projects.
Hoyne Savings Bank
This financial institution provides commercial mortgage lending services in the Chicago metropolitan area.
Tishman Speyer
This global real estate investment and development company manages property portfolios in major cities worldwide.
The details
The site is currently occupied by a parking lot and a one-story building housing the West Loop Auto Spa. While Mavrek previously attempted to develop a citizenM hotel at the location, the firm is now considering several development options, including potential rezoning for a larger project.
Timeline
Tishman Speyer backed out of a contract for the site in mid-2022.
Mavrek secured a $130.4 million construction loan in August 2026.
The purchase of the property was confirmed by September 28, 2026.
Roadmap
Developers are increasingly targeting low-density properties in the West Loop to maximize land utility amidst the city's ongoing residential scarcity. This shift marks a departure from historic industrial uses as firms transition toward high-density apartment construction.
Residents in the area may see the current West Loop Auto Spa operation displaced as the developer prepares the site for potential new construction. The transition of this property suggests a shift toward high-density use that could alter the neighborhood's commercial profile.
The takeaway
Developers in the West Loop are prioritizing land acquisition in high-demand zones to combat local housing shortages. Property owners and residents should monitor future zoning applications for this site to anticipate changes to the surrounding block.
Further reading
For more on local development trends, visit Commercial.
Source note: This article includes information reported by The Real Deal New York.
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