Preservation of Affordable Housing has acquired Island Terrace Apartments, a 240-unit property in Chicago, for $29.5 million from PNC Bank. The buyer will operate the asset through its management subsidiary, POAH Communities.
Merchants Capital provided acquisition financing for the buyer. Additional funding also came from the City of Chicago, while the Illinois Housing Development Authority allocated 9 percent Low-Income Housing Tax Credits for the preservation of the property.
PNC Bank had purchased the property through its Affordable Rental Housing Preservation Funds in 2015 with the intent of preserving the community’s affordability. POAH plans to maintain the affordable status, with renovations planned to start next year. Improvements will include upgrades to building systems, unit interiors and common spaces.
Located at 6430 S. Stony Island Ave., the 22-story property was completed in 1969. The asset has one-, two- and three-bedroom units with floorplans averaging 844 square feet. The community has a fitness center, a business center, a clubhouse and laundry facilities.
The building is across the street from Jackson Park, the future site of the planned Obama Presidential Center, and a short walk from a Metra commuter rail station. The University of Chicago is less than 2 miles northwest of the community, while downtown Chicago is 8 miles north.
Earlier this month, a 120-unit affordable community 15 miles west of Island Terrace changed hands for $9 million. The property in Lyons, Ill., caters to residents aged 62 and above.