Hudson Valley Property Group Expands Affordable Housing Mission To Chicago With $61M Acquisition
A New York-based affordable housing preservation company has made its first acquisition outside of the East Coast, purchasing four Bronzeville properties as it looks to expand its footprint in the Midwest.
Hudson Valley Property Group has purchased a total of 155 affordable units at Drexel Court and Lake Park East, four multifamily buildings located at 4420, 4530 and 4700 South Drexel Blvd., and at 4725 South Ingleside Ave.
HVPG said its entrance into the Chicago market is part of a larger expansion outside the East Coast.
“As a firm committed to ‘doing well by doing good’ across the nation, we are thrilled to expand our mission to the Midwest region,” Jason Bordainick, co-founder and managing partner of Hudson Valley Property Group, said in a release. “We look forward to working closely with the city of Chicago, HUD and [the Illinois Housing Development Authority] to bolster the city’s supply of quality, affordable housing in a time of increased demand.”
The $61M deal will include $13.1M in renovations and modernization projects at the properties, ranging from high-end security and energy-efficient upgrades to new common spaces and a business center.
HVPG plans to finance the purchase via 4% low-income housing tax credits and tax-exempt bonds through IHDA as well as with equity from its latest fund. The company announced in September it had raised $292M for its second fund, which has already been deployed to buy affordable assets in New York, New Jersey, Pennsylvania, Maryland and Rhode Island.
To ensure long-term affordability for residents of the properties, HVPG secured a new 20-year term Housing Assistance Payments contract with the U.S. Department of Housing and Urban Development and a new 30-year LIHTC regulatory agreement.
Since 2010, HVPG and its funds have leveraged more than $2B of investment into affordable housing, preserving more than 10,200 units across 60 properties.