CHICAGO — Related Cos., an owner of affordable housing in the United States, is in the process of acquiring 17 properties totaling 3,062 affordable housing units across the Midwest for $270 million. In addition, the company has acquired Metroplex Inc., an affordable property management company in Illinois.
Through a public-private partnership with the city of Chicago and Illinois Housing Development Authority (IHDA), affordability of the units will be preserved for an additional 30 years and more than $262 million will be invested in the rehabilitation of the properties.
The portfolio acquisition by Related Affordable and Related Midwest, divisions of Related Cos., includes more than 1,500 units in the city of Chicago, including the 628-unit Marshall Field Garden Apartments. The community was due to lose its affordable designation in 2017, but has been extended three more decades as a result of Related’s acquisition.
“Related has preserved more than 35,000 affordable housing units, and we have never converted a single unit to market-rate,” says Matthew Finkle, president of Related Affordable. “Through public-private partnerships like this, we will be able to significantly improve the lives of the residents who call these communities home, and ensure that thousands of residences in the city of Chicago and the Midwest will remain accessible to the families and individuals who need them most. We look forward to continuing to work with the local and state governments to expand our preservation efforts.”
Related will lead a multi-year effort that will update all seven buildings located within Chicago, as well as an additional 605 units throughout Illinois, 404 units in Florida, 248 units in Iowa and 280 units in Minnesota.
One of the first communities to be redeveloped is the 628-unit Marshall Field Garden Apartments complex spanning two blocks in Chicago’s Old Town neighborhood. Upgrades are scheduled to begin in July.
The $175 million project is being financed by IHDA and includes both low-income and historic preservation tax credits. Extensive renovations planned for the individual units and common areas include the construction of a new fitness center, laundry room and enhanced community room, as well as the addition of after-school programming and other services available to residents.
The property received $102 million in conduit bond financing from IHDA, which also allocated the Low-Income Housing Tax Credits that were purchased by Wells Fargo. Fannie Mae provided credit enhancements for the bonds via Wells Fargo as DUS lender.
In addition to the portfolio acquisition, Related has purchased Metroplex, which will add to Related Management’s team of nearly 2,000 employees who manage the day-to-day operations of Related’s more than 45,000 apartments across the country.
Metroplex currently has 200 employees and manages a portfolio of 36 multifamily property developments consisting of 4,749 units in four states: Florida, Iowa, Illinois and Minnesota.
— Danielle Everson