Downtown Office Tower at 36 E. Seventh St. Secures $56.4M Loan for Conversion

Cincinnati, August 17, 2025

News Summary

CIG Communities secured a $56.4 million construction loan to convert a 27-story former office tower at 36 E. Seventh St. into Avant, a 162-unit apartment community. Construction is already underway on the landmark downtown site as part of a regional push to repurpose idle office stock and address housing shortages. The project joins several other major adaptive-reuse efforts in Cincinnati that combine private loans and public incentives to bridge retrofit costs. Developers expect units to hit the market next year, with conversions helping to reactivate downtown cores while navigating structural, zoning and mechanical challenges.

CIG Communities Secures $56.4M Loan for Downtown Cincinnati Conversion; Project Joins a Wave of Office‑to‑Residential Reuse

A Greater Cincinnati developer has closed a $56.4 million construction loan to convert a downtown office tower into apartments. The 27‑story former URS building at 36 E. Seventh St. will become Avant, a 162‑unit residential community. Construction is already underway and units are expected to reach the market next year. Project backers describe the work as part of a broader effort to revitalize the urban core and add workforce housing to downtown.

Project basics and immediate timeline

The conversion will transform the existing office floors into homes, common spaces and building systems sized to modern residential needs. The site was acquired for conversion in 2024 and the developer calls the plan a landmark development in the downtown renewal. Interior work and system upgrades have begun; leasing and marketing are slated to start next year once construction reaches leasing readiness.

Why conversions are growing

Cities nationwide are facing high office vacancy rates at the same time they see persistent housing shortages. Converting underused office buildings into apartments is becoming a practical — if complex — response for dense city centers. Successful outcomes depend on local rules, financing options, physical building layout and market demand. Developers and architects are experimenting with design and financing models to make reuse both feasible and attractive.

Selected examples showing scale and strategies

Several recent conversions illustrate how projects vary by size, funding and design:

• LaSalle Residences (Chicago area): A mid‑rise portion of a historic 22‑story landmark is being repurposed into 226 apartments across roughly 222,500 square feet. The plan includes studios, one‑ and two‑bedrooms and design features such as updated lobbies, fitness spaces, coworking lounges and penthouse terraces with outdoor pool areas. About 30 percent of units are designated as affordable as part of a larger downtown revitalization initiative.
• 7 West 7th (Cincinnati): A 21‑story former department store headquarters reopened recently as a 341‑unit luxury tower after a redevelopment costing roughly $73 million. Public incentives and a port authority bond issuance helped the financing. Amenities emphasize rooftop lounges, coworking suites and fitness spaces.
• Altitude on Main (Richmond, Va.): A 17‑story office tower is being converted into about 302 luxury units with ground‑floor retail. Developers are using federal and state historic tax credits and secured a roughly $68 million unitranche loan to support the work. The team targets a second‑half‑2026 opening and plans for a rooftop deck, indoor sports and tech‑forward amenity spaces.
• SoMA (25 Water St.) (New York): One of the largest conversions in recent U.S. history transformed a 1960s office tower into a 1,320‑unit luxury community under a two‑year, roughly $787 million renovation. The project combined a major overbuild, façade replacement to add larger windows and a wide range of amenities. About a quarter of units are set aside as affordable under public incentives.

Local pipeline and policy tools

In the Cincinnati metro, projections show more than 1,700 new apartments coming from office‑to‑residential conversions in the current year, and nearly one‑fifth of regional office inventory has been identified as suitable for future transformation. Cities and developers lean on a mix of incentives to close financing gaps: tax increment financing, long‑term property tax exemptions, port authority bond issuances, historic tax credits and construction or unitranche loans.

A prominent downtown tower conversion is also moving forward with plans to add nearly 385 apartments as part of a multi‑year redevelopment. Local approvals and a proposed 30‑year tax exemption play central roles in that project’s financial structure, and projected public contributions tied to the tax‑free period include support for schools and mass transit operations.

Design and technical challenges

Common conversion challenges include reworking floor plates, fitting modern mechanical and plumbing systems, meeting current life‑safety codes, and adding plumbing risers and fresh air systems where offices once held open floor plans. Historic buildings add complexity—and opportunity—because tax credits can offset costs but preservation rules often limit exterior changes.

Bottom line

The new loan for the Avant conversion is the latest sign that adaptive reuse is gaining momentum. Across cities, projects vary in scale and approach but share the same goal: turn surplus office space into homes that support downtown life. Success will hinge on financing, design creativity and public policy that balances preservation, affordability and long‑term city objectives.

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FAQ

Key project features at a glance

Feature	Avant (36 E. Seventh St.)	Typical conversion notes
Developer	CIG Communities	Local and regional developers frequently lead adaptive reuse projects
Loan / financing	$56.4M construction loan	Construction loans, unitranche, tax credits and public incentives often used
Building size	27 stories	Sizes range from small mid‑rises to major downtown towers
Planned units	162 apartments	Conversions can add dozens to over a thousand units depending on scale
Expected market timing	Units hit market next year	Timelines depend on permitting, construction phasing and financing
Public incentives	Part of downtown revitalization strategy	TIF, tax exemptions, bonds and tax credits commonly used

Deeper Dive: News & Info About This Topic

Additional Resources

• Multihousing News: Beyond 9 to 5 — How office conversions are reviving downtowns
• Wikipedia: Adaptive reuse
• Local12: Hooper Building conversion underway
• Google Search: Hooper Building Cincinnati conversion
• The Cincinnati Enquirer: Cincinnati’s old offices, warehouses converting to apartments
• Google Scholar: office to residential conversions Cincinnati
• WCPO: $162M Carew Tower conversion moves forward
• Encyclopedia Britannica: adaptive reuse
• Multihousing News: Where are office-to-resi conversions growing most — and why?
• Google News: office to apartment conversions Cincinnati