CHICAGO, August 16, 2022 (Newswire.com) - The Michaels Organization, a national leader in residential real estate, and its Chicago-based partner, DL3 Realty, are set to break ground on a new mixed-income, mixed-use, affordable living community in Chicago, following a successful financial closing. The newly constructed Park Station Lofts in Chicago's Woodlawn neighborhood will occupy a City of Chicago-owned property at the SE corner of E. 63rd Street and S. Maryland Ave, which is currently vacant.
The new development comprises 58 apartment homes, 41 of which will serve households earning between 30% to 60% of the Area Median Income (AMI), as well as 17 market-rate units. Park Station Lofts is just steps away from the University of Chicago and in close proximity to the upcoming Obama Presidential Library Campus. Park Station is a transit-oriented development, located just 350 feet from the Cottage Grove Station of the CTA Green Line.
Park Station will be the first development in the community to meet the requirements of the Woodlawn Affordable Housing Preservation Ordinance, which was passed in 2020 to address the potential gentrification of the area brought on by the Obama Presidential Center. This ordinance - drafted by local officials and neighborhood organizations - will ensure affordable housing remains in Woodlawn by mandating affordability requirements on all rental and for-sale housing developed on City-owned residential land.
"Michaels is excited to expand our South Side presence with this community-driven development," said Greg Olson, Regional Vice President of Michaels Development
Park Station's first floor will include approximately 3,500 SF of retail, two live-work spaces, a management office, and community amenity space. Woodlawn's Sunshine Enterprises will offer business development and wealth-building classes to local entrepreneurs in the building's business center. The apartments will be offered in 1- to 3-bedroom layouts and feature amenities such as designer cabinets, solid surface countertops, luxury vinyl plank flooring and open floor plans.
Financing for the $35 million development includes Low Income Housing Tax Credit Equity in the amount of $19.4 million, Tax Increment Financing (TIF) of $5 million and City of Chicago HOME funds of $6.5 million. Commonwealth Edison is providing approximately $140,000 in funding through its Affordable Housing New Construction energy efficiency program. Equity and debt are provided to the project by tax credit syndicator Berkadia Affordable Housing Tax Credit Solutions with BMO Harris as the investor, construction lender and permanent lender.
DL3 Realty is serving as a co-developer alongside Michaels Development while Michaels Management will serve as the property management company. FitzGerald Associates and Brook Architecture are the project architects and local joint venture partnership Ujamaa Construction/Brown & Momen will serve as general contractor. Construction is expected to be complete by November 2023.
About The Michaels Organization
The Michaels Organization is a national leader in residential real estate, offering full service capabilities in development, property management, construction, and investment management. Serving more than 175,000 residents in more than 450 communities across 37 states, the District of Columbia, and the U.S. Virgin Islands, Michaels is committed to crafting housing solutions that jumpstart education, civic engagement and neighborhood prosperity and to creating Communities That Lift Lives.
About DL3 Realty
DL3 Realty is a full-service real estate development firm committed to accelerating the transformation of emerging communities through high-impact commercial real estate projects.
Media Contact: Laura Zaner, The Michaels Organization, 856-988-5983; email@example.com
Source: The Michaels Organization