Related Acquired Massive Midwest Portfolio, Plans Rehab
- May 01, 2015
Chicago—The Related Companies’ Related Affordable and Related Midwest divisions have acquired more than 1,500 units in Chicago, including the 628-unit Marshall Field Garden Apartments. That property was due to lose its affordable designation in 2017, but has been extended as a result of the acquisition.
The deal is part of a larger number of acquisitions in the Midwest that Related has completed recently, involving 17 properties in four states totaling 3,062 affordable housing units. The company’s goal in every affordable acquisition is to maintain the properties as affordable–it has never converted any to market rate.
Through a public-private partnership with the City of Chicago and Illinois Housing Development Authority (IHDA), the Marshall Field Garden units’ affordability will be preserved for another 30 years. Also, more than $262 million will be invested in the rehab of the properties.
Altogether, Related is undertaking a multi-year effort to update the seven buildings located within Chicago, as well as an another 605 units throughout Illinois, 404 units in Florida, 248 units in Iowa and 280 units in Minnesota. Marshall Field Garden’s upgrades, which will be among the first in this portfolio, are scheduled to begin in July.
The $175 million project is being financed by IHDA and includes both low-income and historic preservation tax credits. Extensive renovations planned for the individual units and common areas, include the construction of a new fitness center, laundry room and enhanced community room, as well as the addition of after-school programming and other services available to residents.