CHICAGO—The AFL-CIO Housing Investment Trust has just decided to funnel $32 million of pension capital funding towards the rehabilitation of 2101 South Michigan, a 26-story residential tower on Chicago's Near South Side. The goal, trust officials say, is to help preserve affordable housing options near Chicago's downtown as new development floods the area.
Built in 1971 with financial assistance from the Federal Housing Administration's grant program for affordable housing, the 250-unit property needs major upgrades to improve its energy efficiency. The $42 million renovation project will also provide a new lobby, community room, and on-site laundry facility as well as energy-efficient appliances and new heating and cooling in the individual units.
"As older downtown neighborhoods experience growth with the corresponding demand for housing, it's very important to preserve and update existing units whenever possible," says HIT Executive Vice President and Chief Investment Officer Stephanie H. Wiggins. "The HIT's investment in 2101 South Michigan will help ensure that quality housing near Chicago's downtown Loop, with its employment opportunities and other amenities, remains available to individuals and families at all income levels."
A Housing Assistance Payment contract administered by the Chicago Housing Authority subsidizes 90 of the building's units, with 39 of those restricted to residents age 62 and older. These units will remain affordable through a HAP contract for another 20 years.
The HIT worked closely with PNC Real Estate and Developers Mortgage Corporation to finance the 2101 South Michigan project. Over the past four decades, HIT has invested more than $400 million in 39 Chicago projects that have created or rehabilitated more than 9,000 housing units, of which more than 60% are affordable.
"HIT's union pension investments have helped address the housing and economic development needs of working families in the Chicago area," says Lesyllee White, HIT's senior vice president and managing director of marketing. "The HIT has financed the production of housing for low- and moderate-income families, while also generating union construction jobs.”
Continue Reading for Free
Register and gain access to:
- 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
© 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.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
