Funding secured for Bank Calumet building revitalization
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The developer behind the revitalization of the historic Bank Calumet building in Hammond has closed on construction financing for the project. NWI Development Group is in the midst of a $28 million project to turn the nearly 100-year-old building into The Banc, a mixed-use development with apartment, retail and event space.
The developer said the financing was secured through a consortium comprised of Munster-based Peoples Bank, Horizon Bank in Michigan City, and Merrillville-based Centier Bank. The cost of the project has risen from its original $24 million estimate.
“We are thrilled to have secured the necessary construction financing for the redevelopment of the Bank Calumet building,” Robert Harte, president of NWI Development Group, said in a news release. “This project not only represents a major milestone for NWI Development Group but also marks a massive step forward towards the revitalization of Hammond’s urban core and sends a signal to the greater Chicagoland area that Northwest Indiana is moving forward.”
The nine-story, 100,000-square-foot building was constructed in 1924. It was home to Bank Calumet until 2006, when the bank was acquired by First Midwest Bank, which ultimately closed the building.
The redevelopment project will bring 100 market-rate apartments on floors 2-9. A 7,000-square-foot event venue is planned for the first-floor banking hall.
A Chicago-based restaurant group is also looking to occupy about 1,000 square feet of ground-floor space. Plans also call for a coworking space, coffee shop and potentially a speakeasy in the building’s basement.
The project has also received funding from the city of Hammond and the Indiana Economic Development Corp. Harte said the financing from the three banks has been key, particularly given the current economic landscape.
“The consortium of regional banks, including Horizon Bank, Peoples Bank, and Centier Bank, recognizes the importance of investing in projects that contribute to the economic growth, development, and revitalization of the region,” Harte said. “Their continuing support, considering this rising interest rate and high inflationary environment, underscores their collaborative spirit and commitment to the significant upward economic trajectory of northwest Indiana.”
Our partners at The Times of Northwest Indiana reported in October that the project had passed the halfway point. The developer aims to complete the redevelopment by May 2024 with the first residents moving in by early summer.