CDT Enters Joint Venture with the Largest Chicago-Based Nonprofit Community Developer
$30 million acquisition and renovation of 200-unit mixed-income apartment complex with Hispanic Housing Development Corp. and Cook County is CDT’s first-ever partnership in Illinois
As it enters 2018, The Community Development Trust is continuing its expansion into new markets and teaming with new nonprofit partners on innovative public-private investments that improves affordable housing options and quality of life for low-income residents and families.
The Hispanic Housing Development Corp. (HHDC), the largest nonprofit developer in Chicago, partnered with Cook County government leaders and CDT to purchase Arrowhead Apartments, a 200-unit mixed-income property on January 31, 2018. Built in 1976, Arrowhead Apartments is located in Chicago’s northwest suburb of Palatine, Illinois and serves both Section 8 and market-rate residents.
“HHDC is a strong, capable and well-aligned partner with a focus on long-term value for its investment portfolio, while building thriving neighborhoods and healthy communities,” said Bob Rice, CDT Senior Vice President – Community Investments.
“HHDC is nationally recognized as a model for community development by private organizations, foundations and government agencies, and the organization has served as a prominent force in Chicago’s affordable housing industry for the past four decades,” Rice said. “We are hopeful that this partnership will lead CDT to further investment opportunities both with HHDC as well as other nonprofits.”
CDT and HHDC are planning significant renovations to the complex – highlighted by $21,425 per unit in capital improvements – totaling nearly $4.3 million through 2021. The improvements include new roofs, landscaping and other upgrades to the exterior and interior: new kitchen and bathroom cabinets, granite countertops, stainless steel appliances, new flooring and light fixtures.
The acquisition was financed with more than $5.75 million in equity from CDT and HHDC combined with a $18.8 million acquisition loan from First American Bank in Chicago. Additional funding for the acquisition and preservation of the property will be provided by Cook County in the form of a $1.4 million low-interest subordinate loan.