HFF announced today that it has closed the sale of Parkway Gardens, a 694-unit, 100 percent Project-Based Section 8 community on the south side of Chicago.
HFF marketed the property on behalf of the seller. Related Companies, through its Related Affordable division and in a venture with Wells Fargo & Company, acquired and will manage the property and plans to invest an additional $40 million to substantially renovate Parkway Gardens.
In order to facilitate the acquisition and renovation of Parkway Gardens, the Illinois Housing Development Authority issued tax-exempt bonds under the New Issue Bond Program, Fannie Mae via Oak Grove Capital provided the credit enhancement for the bonds, and Wells Fargo & Company provided additional equity through the purchase of Low Income Housing and Historic Tax credits. Related has also committed to maintain the affordability of all of the units for an additional thirty years.
Parkway Gardens is situated on 13 acres at 6330-6546 S. Martin Luther King Drive within walking distance of Washington Park and close to the Hyde Park neighborhood, which is anchored by the University of Chicago. The property is comprised of 35 buildings with two- and three-bedroom units averaging 905 square feet each.
The HFF investment sales team included associate director Doug Childers, executive managing director Matthew Lawton, managing director Cary Abod and director Daniel Kaufman.