The Habitat Company Acquires 3 Rental Properties, 498 Units in ChicagoDecember 8, 2017
Chicago-based The Habitat Company, a leading U.S. multifamily developer and property manager, announced today it has acquired and assumed property management of three local rental communities totaling 498 units. The properties include Renaissance West in the trendy Logan Square neighborhood, Lyndale Place in the popular Bucktown area and York Terrace Apartments near Chicago’s Historic Prairie District.
Renaissance West and Lyndale Place
In a deal brokered by Chicago-based Kiser Group and Glen Ellen, Ill.-based Affordable Housing Investment Brokerage, Inc. (AHIB), Habitat acquired two communities that fall under the umbrella of its Affordable Group.
Renaissance West, located at 2517 W. Fullerton Ave., is a 100-unit building comprised of studio apartments, while Lyndale Place, a 67-unit vintage courtyard apartment building, is located at 2575 W. Lyndale St. and features one-, two- and three-bedroom units.
“The Habitat Affordable Group’s acquisition strategy ensures long-term affordability in areas that have seen a significant increase in the cost of living,” said Shangewé Parker, vice president of affordable housing at The Habitat Company. “Due to the amount of new development activity in these burgeoning sub markets, both properties would have been prime candidates for a conversion to market rate units when the regulatory agreements expired — which is what made these perfect acquisitions for us.”
Parker noted that The Habitat Company plans to replace and upgrade a number of the building systems in order to provide an improved tenant experience. Additionally, Habitat’s Generations Housing Initiative (GHI) will provide resident services to both buildings that include health and wellness programs and coordinated access to supportive services for individuals and families.
“Whenever an acquisition involves Section 42 Low Income Housing Tax Credits (LIHTC), it can be an arduous closing process,” said Michael D’Agostino, director at Kiser Group. “With two LIHTC properties involved, this complicated deal took nearly two years to complete due to the approvals needed from multiple government bodies. That said, the wait was worth it. Both buildings are stabilized so Habitat can continue to provide affordable housing for residents.”
Kyle Shoemaker, managing director of Affordable Housing Investment Brokerage, also weighed in on the nuances of the acquisition. “In addition to LIHTC compliance, this deal was regulated by debt from both Illinois Housing Development Authority and the City of Chicago, so a qualified affordable housing operator familiar with Chicago was critical,” he said. “Habitat was the perfect fit.”
York Terrace Apartments
The market rate York Terrace Apartments is comprised of one 21-story high-rise and two four-story low-rise buildings for a total of 331 units. Located at 2701 and 2727 S. Indiana and 2740 S. Prairie Ave., the development is in proximity to the new Marriott Marquis Chicago and DePaul’s new Wintrust Arena.
Developed by The Habitat Company in 1969, the recent acquisition of York Terrace – through a joint venture with KIN Properties – brings a beloved property back into the Habitat fold. “We’ve always kept this property on our radar, it was just a matter of waiting for the right time in the market to make it part of our portfolio again,” explained Matt Fiascone, president of The Habitat Company. “It’s an excellent investment given the neighborhood’s recent rise in activity, so we’re looking forward to bringing the property back to great working condition with newly renovated units.”
According to Fiascone, all units will be renovated along with the building’s exterior, common spaces, mechanical systems, roofing and offices. Each unit will receive new appliances, cabinets, countertops, mirrors, flooring, and lighting and plumbing fixtures. Renovations are anticipated to start in February 2018 with completion scheduled for 2021.
The addition of these three properties brings the number of apartment acquisitions this year to seven communities for The Habitat Company, totaling just over 1,200 units.
For more information about these properties:
Renaissance West Apartments call (773) 862-2500
Lyndale Place, call (773) 645-0209
York Terrace Apartments call (312) 842-9560 or visit www.yorkterrace.com
About The Habitat Company:
Founded in 1971, The Habitat Company is a full-service residential real estate company specializing in property management, acquisitions and development. One of the largest residential property developers and managers in the United States, with over $3 billion in assets and more than 22,000 units under management across six states, the company’s portfolio spans a range of property types, from mid- and high-rise condominium, apartment and adaptive reuse developments to senior and affordable housing communities. Headquartered in Chicago, with more than 800 employees throughout the United States, Habitat is dedicated to improving the communities it serves through innovation and a commitment to excellence. For more information, visit www.habitat.com.
About Kiser Group:
Kiser Group is one of Chicago’s most active and prominent commercial real estate brokers, specializing in the sale of Chicagoland’s mid-market apartment buildings. We assist private investors and property owners with the sale or purchase of both stabilized and value-add multi-family properties. Using proprietary market data, we provide extensive, in-depth knowledge of Chicago’s neighborhoods and surrounding suburbs, maximizing value on behalf of our clients. Kiser Group’s professionals bring an innovative, dynamic perspective to mid-market multifamily real estate.
About Affordable Housing Investment Brokerage, Inc.:
Affordable Housing Investment Brokerage, Inc. (AHIB) was founded by Kyle Shoemaker after identifying a need for an investment brokerage dedicated to the specific needs of the affordable housing industry. Driven by a passion for maximizing client wealth while serving an industry that provides a vital social need, AHIB’s principals have sold over $1B in niche real estate investments, including Project-Based Section 8, Section 42, and HUD-financed properties. The firm provides a national platform for these specialized assets having completed over 60 transactions throughout the country since 2015.
About KIN Properties Inc.:
Kin Properties Inc. is a privately-held commercial real estate investment company in business for over 50 years. The firm’s principal activities are the acquisition, ownership and operation of free-standing, net leased, single tenant retail properties, single tenant industrial properties and big-box “power center” properties.