CHICAGO, IL – HFF announced today that it has closed the sale of Parkway Gardens, 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, executive managing director Matthew Lawton, managing director Cary Abod 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. In the area of acquisitions and refinancing, the company pursues properties that meet one of the following criteria: Section 8 properties with project-based contracts; Section 236 properties in need of rehabilitation; Section 42 LIHTC properties with expiring low-income restrictions; Section 515 FmHA properties with loans that can be prepaid; or other assisted properties, including HODAG, HOME, federal or state-financed public housing. Related actively looks for affordable housing opportunities through the development, acquisition and refinancing of low, moderate and mixed-income properties around the country. Since 1972, Related has developed, acquired or financed over 300,000 units of affordable housing. www.related.com
Holliday Fenoglio Fowler, LP (“HFF”) and HFF Securities LP (“HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 19 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, advisory services, structured finance, private equity, loan sales, and commercial loan servicing. www.hfflp.com