CHICAGO, IL – HFF announced today that it has closed the sale of Parkway Gardens (top left photo), a 694-unit, 100 percent Project-Based Section 8 community on the south side of Chicago.
HFF marketed the property on behalf of the seller. Related Companies, through its Related Affordable division and in a venture with Wells Fargo & Company, acquired and will manage the property and plans to invest an additional $40 million to substantially renovate Parkway Gardens.
In order to facilitate the acquisition and renovation of Parkway Gardens, the Illinois Housing Development Authority issued tax-exempt bonds under the New Issue Bond Program, Fannie Mae via Oak Grove Capital provided the credit enhancement for the bonds, and Wells Fargo & Company provided additional equity through the purchase of Low Income Housing and Historic Tax credits.
Related has also committed to maintain the affordability of all of the units for an additional thirty years.
Parkway Gardens is situated on 13 acres at 6330-6546 S. Martin Luther King Drive within walking distance of Washington Park and close to the Hyde Park neighborhood, which is anchored by the University of Chicago.
The property is comprised of 35 buildings with two- and three-bedroom units averaging 905 square feet each.
The HFF investment sales team included associate director Doug Childers (top right photo), executive managing director Matthew Lawton (middle left photo), managing director Cary Abod (middle right photo) and director Daniel Kaufman.
“The acquisition and renovation of Parkway Gardens was accomplished primarily through the use of Low Income Housing Tax Credits,” says Childers.
“Both sides of the transaction worked diligently and cooperatively in order to facilitate this unique and highly complex structure in order to preserve a large number of affordable housing units while achieving a substantial renovation of Parkway Gardens.”
Related Companies is the most prominent privately-owned real estate firm in the United States.
Formed over 39 years ago, Related Affordable develops, acquires and preserves affordable housing throughout the nation. www.related.com
Contacts
Doug c. Childers, HFF Associate Director, (404) 832-8460, dchilders@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500
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