By: Jeffrey Steel, Multi-Housing News
Chicago-based developer and property manager The Habitat Company has acquired and taken over property management of three near-in apartment communities in Chicago. The properties, totaling 498 units, are Renaissance West in the trendy Logan Square enclave and Lyndale Place in the hip Bucktown area, both on the Northwest Side, and York Terrace Apartments in the South Side’s history-steeped Prairie District.
Renaissance West and Lyndale Place, which both fall under the umbrella of Habitat’s Affordable Group, were acquired in a deal brokered by Chicago-based Kiser Group and Glen Ellyn, Ill.-based Affordable Housing Investment Brokerage.
Renaissance West, at 2517 W. Fullerton Ave., is a 100-unit property comprised exclusively of studio apartments.
Lyndale Place, at 2575 W. Lyndale St., is a vintage courtyard building whose 67- apartment selection is comprised of one-, two- and three-bedroom units.
The Habitat Company intends to replace and upgrade many of the building systems to ensure an enhanced resident experience. As well, Habitat’s Generations Housing Initiative (GHI) will provide resident services to both buildings. Those services include health and wellness programs and coordinated access to supportive services.
“During 2016 Habitat made a strategic decision to direct additional resources to the affordable segment of the multi-family market,” The Habitat Company President Matt Fiascone told MHN.
“Habitat has been involved in affordable housing throughout its history so this was not a ‘new’ direction, but rather a way to continue our growth trajectory. These three properties are all in our home market of Chicago and all in areas that are seeing the entry of new market rate apartments. Combining our experience and expertise in affordable housing with the opportunity to grow our portfolio was an easy decision.”
He added that while Habitat does not want to specify anticipated return levels, “We can say that we were able to attract sophisticated investor capital to these assets, who all independently assessed the opportunities and chose to invest with us.”
When acquisitions involve Section 42 Low-Income Housing Tax Credits (LIHTC), the result can be an arduous closing process, noted Michael D’Agostino, director at Kiser Group. “With two LIHTC properties involved, this complicated deal took nearly two years to complete due to the approvals needed from multiple government bodies,” he added. “That said, the wait was worth it. Both buildings are stabilized so Habitat can continue to provide affordable housing for residents.”
York Terrace Apartments, at 2701 and 2727 S. Indiana St. and 2740 S. Prairie Ave. is a market-rate property comprised of one 21-story high-rise and two four-story low-rise buildings totaling 331 units.
York Terrace Apartments is situated in a swiftly evolving area of the city’s near South Side, and is close to both the new Marriott Marquis Chicago and DePaul University’s new Wintrust Arena, as well as McCormick Place.
BACK IN THE FOLD
York Terrace Apartments was developed by The Habitat Company in 1969. Its acquisition by the Chicago-based company through a joint venture with KIN Properties means a fondly recalled property has been welcomed back into the Habitat family.
At York Terrace Apartments, all units will be renovated, as will the building’s exterior, commons spaces, mechanical systems, roofing and offices. New appliances, cabinets, countertops, mirrors, flooring, lighting and plumbing fixtures will be incorporated into all units. Renovations are slated to commence in February 2018 with completion expected in 2021.