City of Chicago to Subsidize Mixed Income Housing Near Cabrini-Green

January 13, 2010

Daily Real Estate Updates

sudler-sothebys-logo13 January 2010 ? City bail out:: The fledging 263 unit mixed-income condo development, Parkside at Old Town, is getting a little help from the Daley administration. Unable to pay off its construction loan this past December, developer Peter Holsten was able to sidestep a potential $32 million loan default with Chase Bank by securing a well needed $3.4 million public subsidy that will be paid earlier than originally planned. This infusion of cash lowers the sales target needed to receive the money. In addition, the bank has agreed to extend the loan and new investors are injecting more cash into the project. Originally, 194 of the units were to be sold at market rates, 72 were earmarked for CHA residents, and 14 were to be sold at ?affordable? prices. Parkside was to receive $9 million in tax-increment financing with the final $3.4 million paid when 85% of the market rate units were sold. But, the city agreed to lower that figure to 43% and cut the market rate units available to 177. This tweaking of the agreement reduced the overall TIF by $300k. The developer and city hope that this will attract more middle income buyers, a key ingredient for in this type of mixed-income real estate formula.

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About Nancy Gaspadarek

With over nine years in the Chicago real estate market, Nancy continues to enjoy the momentous and exciting process of helping her clients buy and sell homes. Nancy believes that the relationships & friendships that she has developed over the years are priceless. In 2007 she made the decision to partner with Catherine Brennan and the two are collectively known in the industry as The G and B Team. ?It was the best move I could have made?, Nancy says, ?Having a knowledgeable and reliable business partner to counter balance your strengths and have a shared passion to provide top notch service and expertise to all our clients is such a blessing.? Nancy graduated from Florida State University in Tallahassee, where she received a four year scholarship and was the captain of the woman's volleyball team for four years. Nancy has lived in downtown Chicago for over 14-years in a variety of neighborhoods. Her free time is usually spent playing tennis, golf & running/biking along the lakefront. She participated in the 1998 Chicago Marathon and has competed in a number of triathlons as well. She volunteers with The Friends of Blaine School in Lakeview, as well as Umoja Student Development and loves to travel as much as possible. You can contact Nancy at 773.259.9353 or gandbteam.com

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