The Habitat Company and P3 Markets Break Ground on 43 Green, Chicago’s First Mixed-Income, Mixed-Use eTOD in Bronzeville
Multi-phase project consists of three buildings, aims to catalyze historic commercial and residential hub on South Side
Chicago-based The Habitat Company, a leading U.S. multifamily developer and property manager, announced the groundbreaking of the first building at 43 Green, a $100M mixed-income, mixed-use equitable transit-oriented development (eTOD) in Chicago’s Bronzeville neighborhood. Habitat is developing the project in partnership with P3 Markets, a real estate development firm based in Bronzeville, dedicated to public-private partnerships.
Located on a long-vacant, city-owned lot on the northeast corner of East 43rd St. and Calumet Avenue, just north of Hadiya Pendleton Park, the Phase 1 building will be the largest of 43 Green’s three buildings, which are centered around the 43rd Street Green Line L station. The 10-story building will include 99 units, 5,500 square feet of retail space and off-street parking. Apartments will range from studio to one- and two-bedrooms with half of the residences listed as market-rate and the other half offered as income-restricted affordable-rate units.
“Bronzeville is one of Chicago’s great historic neighborhoods and we are excited to build on its legacy by bringing the South Side’s first equitable transit-oriented development to the community, which will add much needed residential and retail options to the area,” said Matt Fiascone, president of The Habitat Company. “While most recent developments in the community have focused on single-family lots or smaller multifamily projects, we are confident 43 Green will appeal across multiple income levels and serve as a catalyst to the neighborhood by driving new investment opportunities and long-term economic growth closer to the Green Line station.”
Like many global cities, Chicago has a robust public transportation system, making it a leading market for transit-oriented development (TOD) for residents to live, work and play. Yet, the popularity of the city's TODs has also created disparity by marginalizing individuals who can no longer afford to live in these premier locales with easy access to transit systems, noted Fiascone. To bridge this gap, Habitat and P3 have been committed to bringing equity to TODs by incorporating affordable housing and mixed uses into its developments.
“Seeing the first shovels go into the ground at 43 Green feels surreal as the community has been wanting a project like this for years,” said Phillip L. Beckham, principal, P3 Markets.
“As a resident of this neighborhood, I know first-hand the positive impact 43 Green will have on the area and I couldn’t be prouder to be working alongside a partner like Habitat, which has a strong track record of developing successful mixed-income properties and shares in my dedication to accelerate equity and affect change in the communities that need it most.”
Barring any supply chain and material delays, construction for the Phase 1 building is expected to be complete by February 2023. The later phases for 43 Green call for two more mixed-income, mixed-use buildings. Upon completion, 43 Green will bring approximately 300 new apartments to Bronzeville of which roughly half will be designated as affordable. Those units will be reserved for renters making up to 60% of the area median income.
“The blend of roughly 50% affordable and 50% market-rate units in this project is a major differentiator with other recent affordable housing developments,” said Charlton Hamer, senior vice president of Habitat Affordable Group.
“We received strong feedback from area residents that there was a need for new market-rate housing, but that it should be balanced with a commitment to long-term affordability for this changing community with so many natural assets.”
Construction of 43 Green is being led by a joint venture of Bowa Construction, a minority-owned, full-service construction management and general contracting company, and McHugh Construction, with Landon Bone Baker as architects for the development. Two future retail tenants earmarked for 43 Green – Momentum Coffee and Super Cycle – are also minority-owned businesses.
Financing for 43 Green involved a multi-layered capital stack, including the use of the City of Chicago's Low Income Housing Tax Credits (LIHTC) allocation, tax credit investors Stratford Capital, a leading tax credit investor that focuses on complex redevelopment projects, and debt provided by 5/3 Bank insured through the HUD 221 d 4 program.
43 Green is the first of many eTOD projects Habitat expects to see rise in cities with strong mass transit. Currently, Habitat is in the early planning stages of redeveloping Marine Drive, a 616-unit mixed-income, mixed-use eTOD in Buffalo, NY, located along the city’s waterfront district and light-rail line.
About The Habitat Company:
Founded in 1971, The Habitat Company is a full-service residential real estate company specializing in property management, acquisitions and development. One of the largest residential property developers and managers in the United States, with over $3 billion in assets and more than 22,000 units under management across six states, the company’s portfolio spans a range of property types, from mid- and high-rise condominium, apartment and adaptive reuse developments to senior and affordable housing communities. Headquartered in Chicago, with more than 800 employees throughout the United States, Habitat is dedicated to improving the communities it serves through innovation and a commitment to excellence. For more information, visit www.habitat.com.
About P3 Markets:
A minority-owned real estate development firm, P3 Markets provides a comprehensive approach to real estate investments that inspire real, measurable change for low to moderate income communities. By connecting local entrepreneurs with promising real estate opportunities, P3’s public-private partnerships create shared, long-term wealth for both investors and communities alike. For more information, visit p3markets.com.