Icarus Investments Group has purchased 311 affordable housing units in Chicago. Pembrook Capital Management provided a $22.4 million first mortgage loan and $6.6 million in preferred equity to fund the acquisition of the Cano 2 portfolio. The financing covered the purchase and upcoming renovation of the portfolio.
Consisting of 20 three- and four-story buildings on Chicago’s South Side, the naturally occurring affordable housing portfolio includes 302 apartments and nine commercial units. The properties are located near Midway Airport and Marquette Park.
The new owner plans to invest in improvements across the portfolio and retain residents earning at or below 80 percent of area median income, while ensuring that annual rent payments do not exceed 30 percent of that figure, Terry Baydala, managing director of originations for Pembrook, said in prepared remarks.
Earlier this month, Chicago Mayor Lori Lightfoot announced an upcoming investment of more than $1 billion toward affordable housing throughout the Greater Chicago area, covering 24 proposed projects. This investment would mark the largest tax credit investment in the city’s history.