Hudson Valley Property Group (HVPG) has acquired Drexel Court and Lake Park East, consisting of four multifamily buildings in Chicago’s Bronzeville neighborhood. The move marks the New York-based company’s entry into the Chicago market.
“As a firm committed to doing well by doing good across the nation, we are thrilled to expand our mission to the Midwest region,” said Jason Bordainick, co-founder and managing partner of HVPG, noting that he is looking forward to working with the city, the Department of Housing and Urban Development (HUD), and the Illinois Housing Development Authority (IHDA) to bolster the supply of affordable housing.
Acquired from the I’m Abe Froman, LLC, the properties provide HVPG an opportunity to improve and preserve 155 affordable homes.
The $61 million investment will include approximately $13.1 million in renovations at Drexel Court and Lake Park East that will prioritize building modernization, high-end security, energy-efficient upgrades, and resident quality-of-life improvements. New common spaces will include a business center and an outdoor picnic area.
The project will be financed with equity from HVPG’s latest fund, as well as 4% low-income housing tax credits (LIHTCs) and tax-exempt bonds through IHDA. Baker Tilly served as the local consultant managing the tax credit application.
To ensure long-term affordability for its residents, HVPG secured a new 20-year term Housing Assistance Payment contract with HUD as well as a new 30-year LIHTC regulatory agreement.
The firm has preserved over 10,200 units across more than 60 properties, serving more than 20,000 residents.