Davis Provides $44M Construction Financing for Downtown Residential Conversion

JLL Capital Markets has arranged $44 million in financing for 31 Milk St., an adaptive reuse multifamily redevelopment in Downtown Boston. Managing director Anthony Cutone, director Madeline Joyce and associates Michael Schwarze and Joe Marinaro represented the borrower, Dinosaur Capital Partners and Mugar Enterprises.

The three-year, senior construction loan was provided by an affiliate of The Davis Companies, as the first deal in its integrated credit platform, The capital stack also included federal and state historic tax credit financing and a subordinate financing from MassHousing.

The Residences at 31 Milk involves the conversion and restoration of a 1921-vintage, 11-story Beaux Arts office building into a 110-unit residential community. Upon completion in 2027, the new community will offer 88 market-rate and 22 affordable units.

“Securing financing for office-to-residential conversions in today’s market requires exceptional collaboration and creative structuring,” said Cutone. “This project represents a true benchmark for adaptive reuse in Boston — bringing together lenders, public agencies and private stakeholders with a shared commitment to getting this transformational project across the finish line.”