BOSTON— A historic office building in Boston’s Financial District is set to become a 110-unit apartment community after JLL Capital Markets arranged $44 million in construction financing for the adaptive reuse project.
The financing will support the redevelopment of 31 Milk Street, an 11-story Beaux Arts office building dating to 1921. The project, known as The Residences at 31 Milk, is being developed by Dinosaur Capital Partners and Mugar Enterprises, with completion expected in 2027.
JLL represented the borrowers in securing a three-year senior construction loan. An affiliate of The Davis Companies provided the financing as the first transaction under its integrated credit platform, while S. USA Insurance Company originated the $44 million loan. The overall capital stack also includes federal and state historic tax credit financing and subordinate financing from MassHousing.
The conversion will transform the historic office property into 110 rental apartments, including 88 market-rate and 22 affordable units. The residences will include studio, one-bedroom and two-bedroom floor plans.
Planned amenities include a club room with lounge seating, a fireplace, televisions and kitchen; an open fitness area with cardio and weight equipment; separate yoga rooms; a conference room; private work-from-home rooms; secure bicycle parking; and a pet washing station.
The project reflects a broader effort to reposition older office properties for residential use as developers seek opportunities to repurpose well-located buildings. At 31 Milk Street, the property’s existing configuration — including its dimensions, floor plates, window lines and interior layout — was particularly suited to residential conversion, according to JLL.
“Securing financing for office-to-residential conversions in today’s market requires exceptional collaboration and creative structuring,” said Anthony Cutone, a managing director with JLL Capital Markets. He described the project as a significant adaptive-reuse opportunity for Boston, citing its combination of historic character, modern amenities and downtown location.
The property is located within walking distance of Faneuil Hall Marketplace, Boston Common, Downtown Crossing, the North End, the Rose Fitzgerald Kennedy Greenway and the Seaport District. It also has access to multiple MBTA subway lines, including the Blue, Orange, Green and Red lines, as well as commuter rail connections at South Station and North Station.
JLL’s Debt Advisory team on the transaction was led by Cutone, Director Madeline Joyce, and Associates Michael Schwarze and Joe Marinaro.
Once completed, The Residences at 31 Milk will add new housing to Boston’s Financial District while preserving and repurposing a century-old commercial building.
