Berkadia Closes $19.4 Million LIHTC Equity Investment in Chicago
PHILADELPHIA, PA – October, 7 2022 – Berkadia Affordable Housing is pleased to announce the closing of a $19.4 million Low-income Housing Tax Credit (LIHTC) investment that will facilitate the new construction of Park Station Lofts, an affordable housing community in Chicago, Illinois. Once complete, Park Station will consist of 58 units, 41 of which will be designated to households earning between 30 and 60 percent area median income (AMI). Park Station Lofts will be located in the Woodlawn neighborhood of Chicago, which is part of the Woodlawn Choice Initiative to preserve and create affordable housing to minimize displacement and ensure community stabilization.
“We are taking one more step towards alleviating Chicago’s affordable housing crisis,” said Susan Moro, Managing Director and Head of Transaction Management, Berkadia’s Affordable Housing team.
Park Station’s first floor will include approximately 3,500 SF of retail, two live-work spaces, a management office, and community amenity space. Woodlawn’s Sunshine Enterprises will offer business development and wealth-building classes to local entrepreneurs in the building’s business center. The apartments will be offered in 1- to 3-bedroom layouts and feature amenities such as designer cabinets, solid surface countertops, luxury vinyl plank flooring and open floor plans.
The property is being co-developed by Michaels Development Company and DL3 Realty Advisors. “Michaels is excited to expand our South Side presence with this community-driven development,” said Greg Olson, Regional Vice President of Michaels Development.
Equity and debt are being provided by BMO Financial Group as the investor, construction lender, and permanent lender. Park Station is the first lower tier property closing into a newly established BMO-Berkadia LIHTC equity fund.
“BMO is proud to be a part of creating quality new affordable housing for the residents of the Woodlawn neighborhood by providing the equity investment and loans to build The Park Station Lofts apartments. This project will embody tangible results of our commitment for a thriving economy, sustainable future, and inclusive society throughout the communities we serve,” said Elizabeth Wright, Vice President, Affordable Housing Investment Manager, BMO Financial Group.
With over $1 billion of LIHTC equity currently in its portfolio, Berkadia’s LIHTC syndication team has helped finance the development of more than 9,470 units of affordable housing across more than 97 properties. In 2021, Berkadia had over $5.1 billion in affordable housing transaction volume across its three business lines comprised of mortgage banking, investment sales and tax credit syndication.