KIG has arranged an $111 million joint venture partnership to invest in and renovate Medical District Apartments, an existing 410-unit rental community in the heart of the Illinois Medical District on Chicago’s Near West Side, and ultimately develop a larger mixed-use project on the site. The new venture includes the property’s owner, Guggenheim Real Estate LLC (GRE), as well as Atlantic Realty Partners and Focus Development Inc.
Located along Ashland Avenue between Polk and Taylor streets, the approximately 5.65-acre property includes two 12-story residential towers, as well as a pair of two-story garage decks under consideration for redevelopment. In addition to repositioning the existing apartment buildings, which were built in 1972, the joint venture is proposing a multiphase development that would include a mix of residential unit types.
GRE selected Atlantic Realty Partners and Focus Development’s joint equity, development and construction plan from a pool of eight potential partners sourced by KIG. Atlantic Realty Partners, based in Atlanta, and Northfield, Ill.-based Focus Development will co-develop the property, while Focus Construction will serve as the general contractor for the rehab and new construction. Tjarksen and KIG Managing Partner Todd Stofflet led the team that represented GRE in the formation of the joint venture.
Currently 94 percent occupied, Medical District Apartments includes a mix of studio, one- and two-bedroom apartments in a highly accessible location, steps from Rush University Medical Center, the University of Illinois at Chicago and several major bus and rail lines.
As part of its capital improvement program, the joint venture plans to enhance residences at Medical District Apartments with new flooring and upgraded kitchens and baths. Select common areas will also be updated as part of the renovation. Current amenities include an outdoor pool and sundeck; fitness center; business center; lobby with concierge and complimentary WiFi; bike room and garage parking.
Due to the property’s proximity to public transportation – Medical District Apartments is less than a quarter-mile from the Polk Pink Line station and within walking distance of the Blue Line – future phases of the project may be eligible for incentives under the city’s transit-oriented development ordinance. The renovation of the existing residential towers is scheduled to begin in third-quarter 2016.
