Chicago manufacturing innovation center mHub has purchased a century-old Near West Side factory, with plans to renovate the three-story building and relocate its operations there by fall.

The publicly funded $50 million project, announced Thursday, will convert the vacant building at 240 N. Ashland Ave. into an 80,000-square-foot innovation space designed to accelerate the development of new products for hundreds of companies. The move will give six-year-old mHub more room to work than its current home in River West.

But the catalyst was an expiring lease, and perhaps the planned redevelopment of the Chicago Tribune’s nearby Freedom Center printing plant as the proposed Bally’s Chicago casino. The 30-acre industrial site has been rezoned to accommodate mixed-use development.

“Once the casino was sited about a half block from us, the landlord really wasn’t interested in having mHub at the facility anymore, so we had to start looking,” said Haven Allen, CEO and co-founder of mHUB. “I imagine at some point, it will be a high rise.”

Launched in 2017, mHub is a nonprofit technology innovation center focused on manufacturing. It set up shop in Motorola Mobility’s old space at 965 W. Chicago Ave. The 63,000-square-foot facility includes 10 production labs, equipment, open space and everything needed to create and manufacture a prototype product.

Over the years, mHub has worked with more than 500 startups and 200 established manufacturers, launching more than 1,500 early-stage products in areas such as climate and energy tech, sustainable manufacturing and medical devices. The startups have generated more than $1.14 billion in revenue, raised nearly $1.5 billion in capital and created about 5,200 jobs, according to mHub.

Last year, mHub created a $15 million venture fund, which has invested in 36 startups to date.

The need to relocate its own facility accelerated a different kind of fundraising, and some innovative thinking.

Set on 2 acres in the Kinzie Industrial Corridor west of Fulton Market, the red brick building at 240 N. Ashland Ave. features a distinctive clock tower and architectural pedigree. Designed by prolific Chicago architects Thielbar and Fugard, whose work includes the landmarked McGraw-Hill building on North Michigan Avenue, the factory was built in 1926 for the Cameron Can Machinery Co. The manufacturer was acquired by the Continental Can company in 1944.

The building later became a Cook Brothers furniture warehouse store and most recently served as a photo and video production office for Northbrook-based Crate & Barrel. It has been vacant since 2019.

The $50 million project includes the $32.5 million acquisition, which closed Thursday, and a projected $17.5 million in renovation costs. Work is expected to begin in the coming weeks, with plans to move into the new facility by fall.

The cost is covered through public financing organized by mHUB, and includes $17.55 million in tax increment financing from the city of Chicago and a $15.52 million tax-exempt bond issued by the Illinois Finance Authority, among other sources.

The building is in a federally designated Opportunity Zone, which provides tax incentives for investments in economically distressed areas as part of the 2017 Tax Cuts and Jobs Act. The location also dovetails with outgoing Mayor Lori Lightfoot’s signature Invest South/West initiative, providing accessibility to underserved communities.

“With this historic investment, mHUB is graduating from an economic development initiative to an essential economic development institution that will create positive impacts in our city for years to come,” Lightfoot said in a news release.

Despite the forced relocation, Allen said mHub will definitely be in a better place, once it completes the renovation and relocation.

“We go from a renter to a landowner,” Allen said. “It’s an incredible location and incredible asset that will bridge east and west of the city, right between where manufacturing and the digital economy around Fulton Market meet.”

rchannick@chicagotribune.com