Applegate and Thorne-Thomsen recently served as investor's counsel, representing AEGON Realty Advisors USA, Inc., in its equity investment in the redevelopment by Columbia Residential, LLC, of the former St. Bernard public housing site, one of the "Big 4" sites in New Orleans, Louisiana. The new development, Columbia Citi Residences at Bayou District, broke ground on December 9, 2008, marking the start of the first redevelopment of a major public housing site severely damaged in Hurricane Katrina.
This first phase of redevelopment will bring 466 residential units in 73 buildings consisting of two- and three-story town homes, and a community center. Of those 466 units, 157 will be public housing units, another 160 will be affordable tax-credit units, and 149 will be market rate rental units. It is anticipated that future phases will include additional rental housing, an elementary school, early learning center and retail components. Units are scheduled to come on-line on a rolling basis beginning in late 2009 and through 2010.
Close collaboration among the developer, the housing authority, and key service providers in the area has produced a strong community and social services plan, which will include case management, job training and employment assistance, credit counseling, computer training, adult education, and improved access to health care.
The total development cost for this first phase is $138 million, including almost $30 million of HUD funding administered by the Housing Authority of New Orleans and $27 million from Louisiana's Community Development Block Grant program. In addition to AEGON's equity investment, substantial private funds have been made available by Regions Bank, Freddie Mac, and MMA Financial.
WILSON YARDS
Applegate & Thorne-Thomsen represented the developer of Wilson Yard, a mixed use project located in the Uptown neighborhood of the City of Chicago, at the corner of Wilson and Broadway. The almost six- acre site was a former Chicago Transit Authority bus barn, and has been largely vacant for over 10 years. The developers, Peter Holsten and John Mullen, worked for several years to gain site control and arrange the necessary financing for the site.
The project will include an approximately 180,000 square foot Target store with underground parking spaces for Target, a 98 unit apartment building for low-income seniors, an 80 unit apartment building for low-income individuals and families, an approximately 23,000 square feet of retail space located under the family apartment building at street level, and a parking garage providing parking for residents of the residential buildings. In addition, a new Aldi store was constructed on the site to replace the existing Aldi store, land under the existing CTA tracks is being leased from the CTA to provide additional parking spaces, and Sunnyside Street will be extended onto the site. The site and the proposed improvements were vertically subdivided to address the fact that four different ownership entities will own the improvements when completed.
Many different funding sources were utilized for the approximately $150,000,000 project budget.
The City of Chicago provided TIF financing for the overall project, as well as a HOME loan to the senior residential building. The City also issued tax-exempt bonds to help finance the senior building.
Dougherty Funding LLC was the lender for the TIF financing.
Bank of America provided construction and permanent loans for the residential buildings, and for the retail component under the family building. The Bank also was the purchaser of the City’s tax-exempt bonds issued for the senior building.
The Illinois Housing Development Authority provided low income housing tax credits for the family building, as well as construction and permanent financing for the family building.
Alliant Capital LLC provided tax credit equity for the senior and family residential buildings, funded through a simultaneous credit closing with JPMorgan Chase Bank.
The Federal Home Loan Bank of Chicago provided funds for the senior and family buildings through its Affordable Housing Program.
New Markets Tax Credit funding was provided through an allocation of tax credits from Bank of America, Enterprise and Local Initiatives Support Corporation.
Bridgeview Bank Group provided predevelopment, acquisition and construction financing.
Additional predevelopment financing was provided by Alliant Capital LLC, LISC and Chicago Community Loan Fund.
The project closing involved six separate closings, and closed on October 21, 2008.
ROSA PARK APARTMENTS
Applegate and Thorne-Thomsen recently served as developer counsel for the Bickerdike Redevelopment Corporation in its efforts to develop the Rosa Parks Apartments, which will consist of ninety-four (94) new construction rental apartments in several buildings on eight (8) different vacant lots in the City of Chicago’s Humboldt Park neighborhood. The transaction fittingly closed on August 29, 2008 (the 45th Anniversary of Martin Luther King’s “I Have a Dream Speech”) and the ground-breaking took place on September 4, 2008.
Utilizing more than ten (10) sources of public and private financing (including both federal tax credits and State of Illinois Donation Tax Credits), the Rosa Parks Apartments represents a $27 million investment to: a) revitalize an area of the West Humboldt Park neighborhood; b) help families move up the ladder of economic opportunity; and c) create jobs and careers for local residents. The apartments will be built by Bickerdike’s wholly-owned subsidiary, Humboldt Construction Company and will be managed by Bickerdike’s affiliate, Bickerdike Apartments, LLC, which both hire and train local residents for living wage careers.
In addition, the Rosa Parks Apartments will generate desperately-needed new revenues for schools, police, and other essential services by putting seven (7) city-owned vacant lots back on the tax rolls and by adding tremendous value to an eighth (8) vacant lot that had been privately-owned. It will provide cutting-edge green technology and green features (including a green roof, solar panels, and high-energy efficiency features), which will decrease the future utility bills of the tenants and reduce the “carbon footprint” of the building, helping the City of Chicago meet its goals to reduce its contributions to global warming. Finally, it will provide affordable “family housing” -- with forty-five (45) three-bedroom apartments and five (5) four-bedroom apartments, as well as 68 apartments affordable to households at or below 50% of the AMI (of those, 24 will be at or below 40% AMI, 16 at or below 30% AMI, and at least 8 at or below 15% AMI).
Bickerdike Redevelopment Corporation is celebrating its forty-first (41st) year of developing affordable housing, creating jobs and opportunity, and revitalizing neighborhoods in the Logan Square, Humboldt Park, Wicker Park, West Town, and Hermosa neighborhoods of Chicago. The Rosa Parks Apartments is a continuation of this proud history. Like Rosa Parks herself, the development illustrates how one courageous and meaningful action can lead to numerous and lasting benefits. Applegate & Thorne-Thomsen looks forward to working with Bickerdike on its next development.
