Chicago-based real estate development firms Golub & Company and Farpoint Development have acquired Prairie Shores, a large-scale workforce housing apartment community in Chicago’s Bronzeville neighborhood. The Goldman Sachs Urban Investment Group is the largest equity investor in the acquisition.
The 20-acre Prairie Shores campus, located between 26th and 31st Streets on Martin Luther King Drive, includes five, 19-story towers with a total of 1,675 residential units. Originally developed between 1957-1961, the campus was a pioneering development incorporating post-war modern architecture. Its amenities include easy access to the lakefront, several fitness centers and resident lounges, expansive and tranquil green space, a large dog park and more.
“The property’s close proximity to Chicago’s central business district and increasing number of new residential, retail and entertainment offerings in the adjacent South Loop area made Prairie Shores uniquely attractive,” said Michael Newman, principal, president and CEO of Golub & Company. “Prairie Shores has been a mainstay in the Bronzeville neighborhood since the late 1950s, and we plan to build on its solid reputation while continuing to serve the hard-working families and individuals who currently live there.”
The community is part of a Near South Side section of the city that is flourishing from new development and destinations including the Wintrust Arena, Historic Motor Row, McCormick Place, and new hotels and restaurants. Residents enjoy close proximity to major thoroughfares, expressways and expanded bike lanes along South King Drive. Metra lines and multiple CTA bus stops offer a short commute to the downtown business district. The 31st Street Bridge directly connects pedestrians to the Lakefront Trail and Margaret T. Burroughs Beach, providing access to numerous types of outdoor recreation.
Farpoint Development is also leading the team that is developing the former Michael Reese Hospital site, which neighbors Prairie Shores, into Bronzeville Lakefront, a transformative project that will be a mixed-use technology, retail and hospitality space encompassing more than 100 acres of pristine Lake Michigan real estate.
“We are thrilled to partner with Golub & Company and the GS Urban Investment Group to bring Prairie Shores into our portfolio,” said Scott Goodman, principal of Farpoint Development. “The Bronzeville community is already one of Chicago’s proudest, and its future is equally exciting. We also look forward to bringing Bronzeville Lakefront, Chicago’s most dynamic lakefront community, to life in the coming years.”
Collin McKenna and Michael Goldman of Golub & Company and Rami Peltz and Eric Helfand of Farpoint Development negotiated the transaction. The seller, Draper and Kramer, was represented by HFF, which was acquired by JLL on July 1, 2019. The brokerage team included Sean Fogarty, now with Artisan Capital Group, Kevin Girard, Wick Kirby and Marty O’Connell. Financing is expected to be provided by ACORE Capital, a leading commercial real estate finance company. Stephen Skok, Matthew Schoenfeldt and Christopher Knight of JLL along with Bill Barry of Draper and Kramer worked on behalf of the new ownership team to place the acquisition loan with ACORE Capital. Terms of the transaction were not disclosed.
“We are proud that through our investment in Prairie Shores we are helping Bronzeville residents access quality, workforce housing, a key pillar in every healthy neighborhood, for years to come,” said Margaret Anadu, the head of the Goldman Sachs Urban Investment Group. “We are excited to make this investment alongside Golub & Company and Farpoint Development.”