(To read more on the multifamily market, click here.)
CHICAGO-Five parcels in the 700 block of South Kedzie Avenue will be developed with market-rate and affordable housing, but the size of the project has yet to be set. New West Kedzie, LLC, the only developer to answer a request for proposals to build on the five properties totaling nearly 1.6 acres, is weighing plans calling for a 60-unit or 77-unit project.
New West Kedzie, LLC originally planned a 100-unit, $21.2-million project in August 2004, when it agreed to city-owned lots in the North Lawndale community for $1 million. New West Kedzie still is in line for a $3-million tax increment financing subsidy, according to Joseph Lopez of the Department of Planning and Development, to help offset the cost of setting aside 20% of the units for buyers qualifying under the city's affordable housing initiative.
Regardless of the number of units, New West Kedzie needs a zoning change to allow for a project more than 50% larger than allowed. The plan commission recently endorsed the change, which would allow for a 126,000-sf development.
One-bedroom units would sell for $130,000 to $145,000, while the discount for affordable units would reduce the price to $103,000 to $105,000. Two-bedroom units would be priced from $195,000 to $215,000, but the discount for the affordable units would reduce prices to $110,000 to $119,000.
Plan commission members noted the prices, even for the market-rate units, could be considered affordable when compared to the overall market. "Given the community dynamics in Lawndale, these price points are more affordable," Lopez adds.
The 77-unit proposal includes one single-family home, 22 three-unit buildings and 10 townhouses. The 60-unit plan includes seven three-unit buildings and 39 townhouses.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
