Standard Communities, a major national affordable housing developer and investor, led a public-private partnership that acquired Lake Park Crescent Apartments, a 148-unit mixed income community in Chicago.
The total capitalization of the transaction is approximately $54 million.
Built in 2004, Lake Park Crescent is located at 1061 E. 41st Place in Oakland, a residential neighborhood on Chicago’s south side. It consists of 13 buildings: one 8-story building with 76 units and twelve 6-unit buildings, with a mix of one, two, and three-bedroom apartments.
The community includes 36 market rate units and 112 affordable units, with qualifying incomes ranging from 40 percent to 80 percent of the Area Median Income. As part of the transaction, sixty Chicago Housing Authority Public Housing Units were converted to Project Based Vouchers under the Rental Assistance Demonstration (RAD) program. The Federal RAD program enables Public Housing Authorities (PHAs) to protect the long-term affordability of public housing units in need of rehabilitation and financial support. Affordability will be extended for at least 30 years.
“Standard is dedicated to improving the quality of life of our residents and we’re pleased to work with our valued partners to extend the affordability of Lake Park Crescent for 30 years,” said Jeffrey Jaeger, Co-Founder and Principal of Standard Communities.
Standard Communities completed this transaction in partnership with the U.S. Department of Housing and Urban Development (HUD), the Illinois Housing Development Authority (IHDA), Chicago Housing Authority (CHA) and the City of Chicago Department of Housing (DoH). The transaction was financed with Low Income Housing Tax Credits (LIHTC) arranged in partnership with Boston Financial Investment Management, with additional financing provided by Citibank.
Standard will oversee a renovation of Lake Park Crescent at a cost of approximately $72,000 per unit. In addition, common areas will be upgraded and exterior grounds improved.
“We strive to apply our capital and development expertise to enhance quality of life and increase opportunities for affordable housing,” said Robert Koerner, Standard’s Chicago-based Chief Investment Officer. “Our innovative financial structuring and strong public-private partnerships are important in creating and preserving much needed affordable housing in high-cost and high-opportunity locations,” he said.