Hudson Valley Acquires Chicago Affordable Housing
The firm plans extensive improvements to the assets, which comprise four century-old buildings.
Hudson Valley Property Group has expanded its affordable housing presence into Chicago with the acquisition of the 155-unit Drexel Court & Lake Park East. The firm acquired the property from I’m Abe Froman LLC, Jason Bordainick, co-founder & managing director of HVPG, told Multi-Housing News.
According to HVPG, the acquisition is being financed by its latest fund, along with four percent LIHTCs and tax-exempt bonds from the Illinois Housing Development Authority. HVPG tapped Hooker DeJong as project architect, while ETC Cos. is tasked with building out the project and Leasing and Management will handle the property management.
The multifamily complex includes four buildings that are within a mile of each other and are made up of three- and four-story walk-ups that were built between 1911 and 1929. The units are covered under the U.S. Housing and Urban Development’s Section 8 program, while also being capped at 60 percent of the area median incom. To keep the units affordable, HVPG secured a 20-year HAP contract with HUD and a 30-year LIHTC regulatory agreement.
Major renovations on the horizon
HVPG is looking to improve and preserve the complex’s affordable housing units with a $13.1 million renovation plan. The improvements will focus on building modernization, energy-efficient upgrades, quality-of-life improvements for residents and the installation of high-end security cameras.
The plan calls for the addition of a community garden, a playground, bike racks, furniture for the picnic areas and site signage. HVPG will also repair the asphalt and concrete surrounding the communities, as well as repaint the perimeter fencing.
“Once we enter a community, we aim to build scale to maximize impact and so that we can leverage the scale to offer expanded programming and services,” Bordainick told MHN.
Beyond the East Coast
The acquisition of Drexel Court & Lake Park East marks HVPG’s entry into the Chicago market, as well as the firm’s plans to expand into the Midwest. Currently, HVPG’s portfolio includes affordable housing communities in New York, New Jersey, Pennsylvania, Rhode Island, Maryland and Florida.
”HVPG’s strategic vision is building a nationwide platform to preserve and elevate affordable housing,” Bordainick told MHN. “It has always been HVPG’s mission to expand beyond the East Coast, and this project felt like the perfect next step.”
To date, HVPG has preserved more than 10,200 units across more than 60 properties in its portfolio. Most recently, HVPG completed its $57 million preservation project of a 221-unit fully affordable community in East Orange, N.J. that was acquired in 2021.