Security Properties to Rehab Illinois Community
The Seattle-based company closed on University Village, a 534-unit affordable housing development in DeKalb, Ill. The new owner will renovate the property, which will maintain its affordable status for at least the next 15 years.
The University Village in DeKalb, Ill.
Security Properties, a national real estate investment, development and operating firm, recently recapitalized University Village, a 534-unit multifamily property in DeKalb, Ill. Evergreen Real Estate Services is the manager of the community. According to housingfinance.com, University Village will preserve its affordability for at least another 15 years.
Located at 722 North Annie Glidden Road, University Village is a garden-style community including both townhouses and apartments. According to Yardi Matrix data, the 45-building property features 98 one-, 272 two- and 44 three-bedroom units. The amenity package includes a fitness center, a business center, tennis and basketball court and swimming pool, as well as 1,050 parking spaces. The rehabilitation will upgrade kitchens and bathrooms, provide significant exterior and site improvements including modifications related to ADA accessibility, as well as an expansion of the existing community center to include a resident resource and activity area.
The property is a mixture of project-based Section 8 housing, as well as income restricted units at 60 percent of the area median income. Originally developed in the ’70s and ’80s with various financing incentives offered by the U.S. Department of Housing and Urban Development and the Illinois Housing Development Authority, the property is a fully affordable suburban Chicago asset. Two of the three phases of construction also participated in the Low Income Housing Preservation and Resident Homeownership Act in 1995.
In June 2016, Security Properties received an allocation of 4 percent Low Income Housing Tax Credits, which facilitated the current recapitalization. The allocation was paired with an issuance of tax-exempt bonds by IHDA and 223(f) HUD-insured permanent financing sourced by Pillar Finance, a division of SunTrust Bank, with PNC Real Estate partnering with Security Properties as the tax credit equity investor.
The rehabilitation process will occur during the next 12 months.
Last month, Security Properties purchased Orchard Club, an affordable community in Las Vegas, for $27 million.
Image courtesy of Yardi Matrix
