$33.4M in financing set for Shimer Square

Jonathan Turner
·3 min read

Rock Island-based Economic Growth Corp. announced Wednesday that it reached a monumental milestone by successfully closing on complex financing needed to start construction for the historic, adaptive-reuse redevelopment of McKee Hall/Hostetter Hall and Dezendorf Hall for Shimer Square in Mt. Carroll, Ill.

This achievement marks the official start in transforming McKee Hall/Hostetter Hall and Dezendorf Hall into 51 units of quality, affordable rental apartments, catering to various living preferences and lifestyles, according to a Growth release.

McKee/Hostetter Hall are the largest buildings within the Shimer Square campus.
McKee/Hostetter Hall are the largest buildings within the Shimer Square campus.

The project — with total development costs surpassing $33.4 million — represents the largest and most complex effort undertaken by Growth to date. Bringing together nine layers of financing sources has been the culmination of years of behind-the-scenes effort and months of diligent work to finalize and close on the transaction, the organization said.

“The commitment demonstrated by Growth and its esteemed development and transaction team to redevelop and revitalize these historic buildings highlights the depth of their dedication,” the release says.

“This project stands as a testament to the power of vision, perseverance, and collaboration,” said Brian Hollenback, president/CEO of Growth. “These qualities are epitomized by our esteemed board of directors, whose steadfast support served as a cornerstone upon which the success of this endeavor was built.

Bran Hollenback, Growth’s president and CEO.
Bran Hollenback, Growth’s president and CEO.

“We are proud to breathe new life into these historic buildings, preserving history and heritage while fostering progress,” he added. “This milestone not only marks a significant achievement for Growth, but also underscores the unwavering commitment made by many to preserve Shimer’s history while forging the campus ahead into a brighter future.”

The financing partners include American Bank & Trust, BankORION, Bridge Investment Community Development Corporation, city of Mount Carroll, Clocktower Tax Credits, IH Mississippi Valley Credit Union, Illinois Housing Development Authority (IHDA), R4 Capital, and Sauk Valley Bank.

“IHDA is proud to support this effort that will give a local landmark new life as quality, affordable rental housing for families and individuals in Carroll County,” IHDA executive director Kristin Faust said in the release. “Shimer Square is one of the first new housing developments the county has seen in over two decades, and it is a testament to the work of the Mount Carroll City Council, the Economic Growth Corporation and others who have been working for years to bring new housing and opportunity to the community.”

Dezendorf Hall will be redeveloped in conjunction with McKee/Hostetter Hall into 51 new, quality rental units.
Dezendorf Hall will be redeveloped in conjunction with McKee/Hostetter Hall into 51 new, quality rental units.

“As Mayor of Mount Carroll, I feel fortunate to have a committed developer like Growth by our side throughout this transformative endeavor,” Mayor Carl R. Bates said Wednesday. “Their unwavering dedication to preserving our history while driving progress forward is truly commendable.

“The closing of financing for the historic redevelopment of McKee Hall/Hostetter Hall and Dezendorf Hall at Shimer Square is a testament to their vision and perseverance,” he said. “We are lucky to have Growth as a partner, ensuring that Shimer’s legacy thrives alongside its promising future.”

(shimersquare.com)
(shimersquare.com)

The development team consists of:

  • Economic Growth Corporation, developer

  • Applegate & Thorne-Thomsen, legal counsel

  • Estes Construction, general contractor

  • Baranski Hammer Moretta & Sheehy Architects & Planners, architect

  • Yost Property Management. property manager

Construction activities will span throughout 2024, with the cleanout of sites currently underway. Completion of the redevelopment and the welcoming of new residents will occur in 2025.

In addition to quality living spaces, Shimer Square will offer an array of community amenities for its residents including a community room, activity room, library/reading area, community garden, bike racks, picnic tables, grills, and walking path improvements, promoting health, community engagement, and connection within the overall campus.

Prospective residents are encouraged to join the waitlist to secure their place in this vibrant community. The unit mix includes studio, one, two, and three-bedroom apartments, ranging from 750 to 1,125 square feet, catering to diverse needs. For more information and to join the waitlist, click HERE.

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