Habitat Co., P3 Land Financing for $100M Chicago Project
Phase 2 of this transit-oriented development is scheduled for groundbreaking later this year.
The Habitat Co. and P3 Markets have acquired land and lined up construction financing for the second phase of their 43 Green project in Chicago’s Bronzeville neighborhood. The first phase of the three-part $100 million project, featuring a 99-unit building, welcomed its first residents early this month.
Groundbreaking on the 80-unit second phase of the mixed-use South Side project is set to take place by the end of June. Situated west of the 43rd Street Green Line L Station, Phase II will include 44 affordable apartments.
43 Green is the first equitable transit-oriented development on Chicago’s South Side. Chicago’s ETOD program is aimed at bridging the inequality gap brought about by the lack of transit-adjacent development in South and West Side Chicago. In 2022, the Chicago City Council passed the Connected Communities Ordinance incentivizing TOD projects throughout the larger city area.
Phase II of the project will be financed with a U.S. Department of Housing and Urban Development-insured Section 221(d)(4) first mortgage originated by Bellwether Enterprise Real Estate Capital, a construction loan provided by Fifth Third Bank of Chicago, Low Income Housing Tax Credits through the City of Chicago and acquired by Fifth Third Bank through Stratford Capital Group and Chicago Department of Housing gap funding via a HOME loan and TIF grant.
A joint venture of Bowa Construction and McHugh Construction are heading up construction on the project. Landon Bone Baker is the development’s architect. Phase II is expected online by the end of summer 2024.
Phase I and II of 43 Green
The first phase of 43 Green, situated at 4308 S Calumet Ave., features the largest of the three buildings included in the project. The 10-story project includes 5,500 square feet of retail space and parking. Long-term lease negotiations are currently underway for the retail space in the building.
Half of the units in Phase I are set aside for residents earning up to 60 percent of the Area Median Income. Homes include studio, one- and two-bedroom layouts. Amenities include a fitness center, business center, rooftop deck, community room with kitchen and bicycle storage, as well as laundry facilities.
Dining, retail and entertainment options are available nearby in the Hyde Park neighborhood, while Washington Park and Lake Michigan are in close proximity to the property. Downtown Chicago is approximately 25 minutes away via public transportation and a 15 minute drive away.
The sponsors are in the process of lining up financing for 43 Green’s third residential phase, which is anticipated to feature some 70 units and should break ground in early 2025. The Habitat Co. recently closed the financing of a 92-unit mixed-income community at 1325 W. Washtenaw Ave., in Chicago. Plans for the site include 350 apartments in addition to 120,000 square feet of commercial space.