CHICAGO, IL—Villa Capital Partners purchased a 14-building, 289-unit portfolio of affordable apartments located primarily on Chicago’s West Side from Chicago-based nonprofit NHS Redevelopment for $7.8 million. Villa plans to spend about $3 million to renovate the properties, which will remain affordable under a seven-year contract with the city. Interra Realty, a Chicago-based commercial real estate investment services firm, brokered the sale.
Founded in 2005 by Erik Hubbard and John Pagone, VCP focuses on building wealth in underdeveloped and emerging communities throughout Chicago and the Midwest. The firm has managed the affordable housing portfolio since December 2015 and will continue to do so as owner.
“Because we have operated these communities for over three years, we were already ‘invested’ in them and saw an opportunity to use our familiarity with the buildings, and the residents who call them home, to make thoughtful improvements in conjunction with our extension of their affordable housing contracts,” says Hubbard, managing principal of VCP. “As a company, we are committed to the health and revitalization of all of Chicago’s neighborhoods, and this investment directly aligns with that mission.”
The buildings are in Chicago’s Austin, East Garfield Park, West Humboldt Park and North Lawndale neighborhoods on the West Side, and in Roseland on the South Side. All but one of the properties is vintage; the community in Roseland is about 20 years old. The portfolio includes a mix of one-, two-, three- and four-bedroom units.
“This is one of the largest West Side transactions of its kind in recent years and reflects the broader push for the preservation and rehabilitation of affordable units throughout the city,” says David Goss, co-founder and managing principal of Interra. Goss brokered the deal with Jon Morgan, also a co-founder and managing principal of Interra, and Lucas Fryman, a director at the firm.