Dinosaur Capital and Mugar Ent. secure $44 million financing for 31 Milk St.

Boston, MA JLL Capital Markets has arranged $44 million in financing for 31 Milk St., an adaptive reuse multifamily redevelopment in Downtown.

JLL represented the borrower, Dinosaur Capital Partners and Mugar Enterprises, in securing the three-year, senior construction loan from an affiliate of The Davis Companies, as the first deal in its integrated credit platform, and S. USA Insurance Company originated the $44 million financing for Dinosaur Capital Partners and Mugar Enterprises as part of a capital stack that 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 available in studio, one- and two-bedroom layouts. The Residences will feature modern amenities including a club room with lounge seating, fireplace, televisions and a kitchen; an open fitness area for cardio and weights and separate yoga rooms; a conference room; private work-from-home rooms; secure bike parking and a pet washing station.

Located in the city’s Financial District, The Residences are within walking distance of some of the city’s popular public areas and neighborhoods including Faneuil Hall Marketplace, Boston Common, Downtown Crossing, the North End, the Rose Fitzgerald Kennedy Greenway and the Seaport District. Additionally, the property is transit-oriented within walking distance of the MBTA State St. Blue and Orange Lines, the Park St. Green and Red Lines and commuter rail access at South Station and North Station.

JLL Capital Markets’ Debt Advisory team representing the borrower was led by Managing Director Anthony Cutone, Director Madeline Joyce and Associates Michael Schwarze and Joe Marinaro.

“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. 31 Milk St.’s building dimensions, floor plates, window lines and interior layout uniquely coalesced into an opportunity for the adaptive reuse of the property as residential. Collectively, the combination of modern amenities, historic charm and prime location will serve as a key differentiator for the Residences, effectively establishing a new benchmark for boutique rental apartments in the heart of Boston.”