This Week's Chicago Deal Sheet
As unemployment soars, many Chicagoland neighborhoods will need more affordable housing, and two nonprofits secured funds for two such projects in South Chicago: preserving the YMCA at 3039 East 91st St. as affordable senior housing and developing a 40K SF community center.
The South Chicago community group Claretian Associates partnered last year with the national housing preservation group Preservation of Affordable Housing to acquire the 101-unit senior housing YMCA building. The partners will renovate the apartments and the building's community space with Low-Income Housing Tax Credits, tax-exempt bonds, a $1M loan from the Illinois Housing Development Authority and a $4.6M loan from the city of Chicago's Department of Housing.
“Now, thanks to funding from the state of Illinois and the city of Chicago, we have the means to proceed,” POAH Senior Vice President Bill Eager said.
Planned upgrades of the 91-year-old building include modernizing apartments, replacing heating and cooling systems with energy-efficient mechanicals, installing a new roof and landscaping.
POAH officials say exterior renovations will begin in mid-2020 and apartment renovations next year.
The groups also have funds to develop the Salud Center, a 40K SF community center that will offer health and wellness services, a business incubator, recreation, employment development programs and amenities for neighborhood residents.
“By partnering with POAH, we’ll not only revive an important community asset, but also create a wealth of new opportunities to build a stronger, healthier community,” Claretian Associates Executive Director Angela Hurlock said.
CRG, the real estate development and investment arm of Chicago-based Clayco, hired Jeff Lanaghan as senior vice president, partner and leader of its Midwest region industrial practice. Lanaghan joins CRG after 28 years at IDI Logistics, where he was market leader for the Chicago region. CRG has brought in a lot of new blood in the past year. Recent additions include former city of Chicago Planning and Development Commissioner David Reifman, Geoffrey Kasselman as senior vice president and partner, and Andy Perille as vice president of development.
Greystone provided a $27.6M Freddie Mac loan to Bayshore Properties for the acquisition of Tanglewood Apartments, a 384-unit, Class-B multifamily property in Hammond, Indiana. The transaction was originated by Greystone’s Dan Sacks and Eric Rosenstock. Bayshore bought the property, which consists of 16 three-story buildings spread across nearly 20 acres, for $33.5M.
Associated Bank provided $23.6M in construction financing for Valor on Washington, a new housing development in Madison, Wisconsin, which will focus on affordable housing for veteran families. The development at 1322 East Washington Ave. will have 59 units in a six-story building. Dryhootch, a nonprofit organization, will provide veteran services. Gorman and Co. is the developer, general contractor and property manager. Bryan Schreiter of Associated Bank managed the loan and closing. The financing includes $9.4M of Low-Income Housing Tax Credit equity, as well as a grant from the Federal Home Loan Bank system.
AMP Real Estate Holdings sold for $1.8M a 4.68-acre site at the southwest corner of Tek Drive and Route 31 in northwest suburban Crystal Lake. The new owner, BSTP Midwest, plans to create a Thorntons convenience store on the site. Rick Scardino of Lee & Associates’ Illinois office brokered the sale. In 2021, the $100M Mercyhealth Boutique Hospital will open nearby.
An undisclosed local investor purchased for $1.48M a 24-unit courtyard apartment building at 7526 South Colfax Ave. in Chicago’s South Shore neighborhood. Interra Realty’s Ted Stratman and Jeremy Morton represented the private seller in the off-market transaction. The building was 92% occupied at the time of sale.
CONSTRUCTION & DEVELOPMENT
General Capital Group and its general contractor Joseph J. Duffy Co. are set to begin transforming into affordable senior housing the former James C. Bush Elementary School at 2117 West Church St. in northwest suburban Johnsburg. Because of the coronavirus pandemic, the developer did not schedule a formal groundbreaking. The builders will renovate the administration and gym areas of the existing one-story school into 14 apartments, resident support facilities and office space, as well as add a three-story wing with 54 one- and two-bedroom units.
THIS & THAT
Chicago-based @properties, a residential brokerage firm, made an equity investment in Nest Realty, a Charlottesville, Virginia-based real estate company with nearly $1.4B in annual sales and 15 offices in five states. Nest founder Jonathan Kauffmann, along with partners Keith Davis and Jim Duncan, will retain an ownership stake in Nest and continue overseeing day-to-day operations and retain its brand identity. @properties’ Thad Wong and Mike Golden said the partnership gives the firm a foothold in several secondary markets, including Charlottesville, Louisville and the Triangle region of North Carolina.
CORRECTION, JUNE 4, 9:45 A.M. CST: The original version of this article referred to a YWCA building. It was a YMCA building. The story has been updated.