Standard Communities has paid $54 million for Lake Park Crescent, a 148-unit partially affordable community in Chicago, through a public-private partnership. The seller was Draper & Kramer, according to Yardi Matrix data.
The community combines 36 market rate and 112 affordable units, qualifying incomes ranging between 40 and 80 percent of the Area Median Income. As part of the transaction, 60 Chicago Housing Authority public housing units were converted to Project-Based Vouchers under the Rental Assistance Demonstration program and their affordability was extended for at least 30 years.
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To complete the acquisition, Standard Communities partnered with the U.S. Department of Housing and Urban Development, the Illinois Housing Development Authority, Chicago Housing Authority and the City of Chicago Department of Housing. The buyer financed the transaction with low-income housing tax credits secured in partnership with Boston Financial Investment Management, as well as additional funds provided by Citibank.
A partially affordable community
Completed in 2005, Lake Park Crescent encompasses 13 buildings with one-, two- and three-bedroom apartments ranging from 645 to 1,400 square feet. Common-area amenities include a fitness center and laundry facilities. Standard is planning to start a renovation process, with a budget of $72,000 per unit, while also upgrading the exterior grounds and common areas.
Located at 1061 E. 41st Place, the property is close to U.S. Route 41 and Interstate 90. There are several dining options, retail spaces and entertainment venues in the proximity, as well as green areas such as Burnham Park, Mandrake Park and Burnham Nature Sanctuary. Provident Hospital of Cook County is roughly 2 miles southwest.
Standard owns more than 14,100 units across the U.S. and has completed more than $3.8 billion of affordable housing acquisitions and rehabilitations nationwide. One of these transactions involved a 230-unit affordable community in Hawthorne, Calif., that Standard bought for $140 million, also through a public-private partnership.