Related Acquiring 17 Aff. Housing Properties

CHICAGO—Related Companies is in the process of acquiring 17 properties totaling about 3,000 affordable housing units across the Midwest, including many as part of a public-private partnership with the City of Chicago and Illinois Housing Development Authority. The deal will preserve about 1,500 units in the city and extends by three decades the affordable designation of the 628-unit Marshall Field Garden Apartments in the Old Town neighborhood on the North Side, which was due to expire in 2017.

Related has also purchased Metroplex Inc., a Chicago-based affordable property management company that manages the Marshall Field complex, located at 1448 N. Sedgwick St., and dozens of others across four states. In addition to these acquisitions, over the past two years Related officials say they have acquired 3,196 units and expects to close on another 1,027 affordable units later this year.

“While Related is perhaps most widely known for its luxury residential developments, our company was founded more than four decades ago with the goal of developing new and retaining existing affordable housing,” says Curt Bailey, president of Related Midwest, the Chicago office of Related Companies. “Today's announcement demonstrates our pledge to expandhousing options across all income levels.”

In 2011, Related joined with Wells Fargo to purchase and rehabilitate Parkway Gardens, a 694-unit affordable rental community on Chicago's South Side, and will now lead a similar multi-year effort at Marshall Field, other buildings in Chicago, as well as an additional 605 units throughout Illinois, 404 units in Florida, 248 units in Iowa, and 280 units in Minnesota.

IHDA will finance the $175 million effort at Marshall Field with $102 million in conduit bond financing and low-income housing tax credits purchased by Wells Fargo. Related will begin upgrades in July. The company will renovate individual units and common areas and build a new fitness center, laundry room and community room. Residents will also get additional services as part of the deal including more after-school activities.

“The preservation of Marshall Field Gardens by Related Affordable will ensure housing opportunity in the Near North Side community for decades,” says Antonio R. Riley, Midwest regional administrator for the US Department of Housing and Urban Development. “Marshall Field Gardens will be maintained as high-quality, affordable housing for many longtime residents in this community of opportunity. Residents will continue to benefit from access to excellent transportation and jobs, in addition to training and employment opportunities that will empower residents and serve as a catalyst for change.”