CHICAGO—Chicago-based The Habitat Co. has closed on the $16 million acquisition and rehabilitation of a 153-unit, single-room-occupancy community in Chicago's East Garfield Park neighborhood. The firm has already started to renovate the property, and plans to complete the work in May 2018.
The new project is a good illustration of one aspect of the company's overall strategy. As reported in GlobeSt.com, although it has set a goal of expanding operations beyond Chicago, Habitat also aims to retain its leadership in the local affordable housing sector.
“The Habitat Co. started as an affordable housing developer 46 years ago, and while we are diversified in market-rate and condo management disciplines, we're consistently looking to grow our affordable housing portfolio with meaningful projects,” says Matt Fiascone, who became president of Habitat in 2014. “Preserving the affordability of East Park SRO demonstrates how important public-private partnerships are to both provide affordable housing opportunities and link residents with the supportive services they need to become self-sufficient.”
No stranger to the building at 3300 W. Maypole Ave., Habitat developed East Park SRO in 1994 through an affiliate – East Park Limited Partnership – and has managed the community ever since. Fiascone says this latest financial commitment will ensure the development remains affordable, add enhancements for residents and reduce the building's carbon footprint by adding energy efficiencies.
The company will retrofit the building with LED lighting, high-efficiency boilers and new in-unit heating and cooling. Rehabilitation work will include a new roof, masonry repairs, mechanical upgrades, landscaping improvements, lighting and common area enhancements, as well as unit upgrades.
During the 13-month project, residents will move to alternate apartments at the property until their apartments are renovated.
Estimates show energy upgrades are a cost-effective strategy for multifamily developers – improving efficiency by up to 30 percent, and saving approximately $3.4 billion each year, according to the American Council for an Energy-Efficient Economy.
Today, Habitat's management portfolio comprises more than 22,000 units across five states, of which approximately 10,000 are affordable or public housing. In fact, Habitat is currently the largest property manager for the Chicago Housing Authority.
The company has secured funding through a mix of equity from federal low-income housing tax credits and tax-increment financing funds from the City of Chicago, a grant from the Federal Home Loan Bank of Chicago and debt financing from the Illinois Housing Development Authority. The PrivateBank also provided a construction loan, financed through the purchase of tax-exempt bonds issued by the City of Chicago.
CHICAGO—Chicago-based The Habitat Co. has closed on the $16 million acquisition and rehabilitation of a 153-unit, single-room-occupancy community in Chicago's East Garfield Park neighborhood. The firm has already started to renovate the property, and plans to complete the work in May 2018.
The new project is a good illustration of one aspect of the company's overall strategy. As reported in GlobeSt.com, although it has set a goal of expanding operations beyond Chicago, Habitat also aims to retain its leadership in the local affordable housing sector.
“The Habitat Co. started as an affordable housing developer 46 years ago, and while we are diversified in market-rate and condo management disciplines, we're consistently looking to grow our affordable housing portfolio with meaningful projects,” says Matt Fiascone, who became president of Habitat in 2014. “Preserving the affordability of East Park SRO demonstrates how important public-private partnerships are to both provide affordable housing opportunities and link residents with the supportive services they need to become self-sufficient.”
No stranger to the building at 3300 W. Maypole Ave., Habitat developed East Park SRO in 1994 through an affiliate – East Park Limited Partnership – and has managed the community ever since. Fiascone says this latest financial commitment will ensure the development remains affordable, add enhancements for residents and reduce the building's carbon footprint by adding energy efficiencies.
The company will retrofit the building with LED lighting, high-efficiency boilers and new in-unit heating and cooling. Rehabilitation work will include a new roof, masonry repairs, mechanical upgrades, landscaping improvements, lighting and common area enhancements, as well as unit upgrades.
During the 13-month project, residents will move to alternate apartments at the property until their apartments are renovated.
Estimates show energy upgrades are a cost-effective strategy for multifamily developers – improving efficiency by up to 30 percent, and saving approximately $3.4 billion each year, according to the American Council for an Energy-Efficient Economy.
Today, Habitat's management portfolio comprises more than 22,000 units across five states, of which approximately 10,000 are affordable or public housing. In fact, Habitat is currently the largest property manager for the Chicago Housing Authority.
The company has secured funding through a mix of equity from federal low-income housing tax credits and tax-increment financing funds from the City of Chicago, a grant from the Federal Home Loan Bank of Chicago and debt financing from the Illinois Housing Development Authority. The PrivateBank also provided a construction loan, financed through the purchase of tax-exempt bonds issued by the City of Chicago.
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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.
