Jonathan Rose Companies acquired multifamily property Webster House in Chicago. The acquisition was done in partnership with Chicago-based developer Prairie Management & Development, Inc., and brings Rose’s holdings in the Chicago area to more than 2,300 units.
At closing, Rose renewed the expiring contract with the U.S. Department of Housing and Urban Development for 20 years, preserving affordability at a long-standing mixed-income community in one of Chicago’s most affluent neighborhoods.
Rose and PMD plan to invest in a renovation of the property that will include building systems upgrades, updates to apartments and community spaces, and greening improvements. Additionally, as part of a Social Impact program, Rose and PMD will hire a resident services coordinator to support the community with programming and connections to vital local resources. Webster House consists of 114 market rate apartments and 72 affordable apartments rent-subsidized under a Project-Based Section 8 contract.
JPMorgan Chase Bank, N.A. arranged $31.5 million of debt financing through its commercial lending arm, which included $24.5 million of existing first lien debt and $7.0 million of supplemental debt to finance an initial renovation.
Rose and PMD acquired the property from a local partnership with connections to the original residential developer. Representatives of the seller expressed that they were committed to preserving affordable apartments at Webster House and are supportive of Jonathan Rose Companies’ contract renewal that will preserve affordability for at least the next 20 years. The sale was arranged by John Jaeger and Justin Puppi from CBRE’s Chicago Multifamily Team and Tim Flint of CBRE’s Affordable Housing Team.
