Chicago Construction News staff writer
One of the largest affordable housing developments in Chicago has been purchased by the Jonathan Rose Companies. The 272-unit Barbara Jean Wright Court Apartments was sold by the Chicago Community Development Corporation (CCDC) for $17.5 million.
Rose officials say they will spend $46 million to the rehabilitation apartments and common spaces
“With the housing markets in the West Loop and Pilsen booming, all – including HUD, the city’s Department of Housing, the State, the alderpersons, the CHA, the tenants and the tenant advocates — were united in our efforts to preserve this critical piece of affordable housing,” said Rose’s partner and senior managing director Nathan D. Taft.
All but 21 apartments will be affordable to tenants earning 60 percent or less of the area median income, and 70 percent of units will receive project-based rental assistance through HUD or the Chicago Housing Authority. Also, 21 apartments will be unrestricted and unsubsidized, allowing existing market-rate renters to remain on-site, as well.
The building has not been renovated for more than 20 years.
Work will include a complete renovation of all 272 apartments, as well as heating and cooling systems of all buildings, new landscaping and renewal of the property’s playgrounds and basketball court. Also, Rose will create a new 5,000 sq. ft. clubhouse with a fitness center, computer learning center, and a large multi-purpose room.
Enterprise Housing Credit Investments contributed $25.3 million in federal tax credit equity while PGIM Real Estate Finance arranged a $46.9 million FHA 221d4 mortgage loan. Huntington National Bank is providing a $20.3 million construction loan and the City of Chicago contributed tax increment financing of $4.0 million and Community Reinvestment Plan funds in the amount of $3.8 million.
Residents will be temporarily relocated on a rolling basis throughout the two-year renovation period.