Jonathan Rose Cos. has acquired Englewood Gardens, an apartment portfolio in Chicago’s Englewood neighborhood, and plans to preserve everything as affordable housing. It’s the latest in a series of Chicago acquisitions by a New York City-based investor, with company officials saying there is a financial strain to preserve and refurbish thousands of local units. .
The company partnered with local developer 5T Management to acquire 13 buildings, 167 units, scattered Section 8 properties from affordable housing developer Anthony Fusco for $10.7 million.
Steve Thomas, Director of Acquisitions and Development at 5T, said: “It builds community”
Jonathan Rhodes is becoming a big player in Chicago’s affordable housing sector. By the end of the year, he plans to own more than 2,000 affordable mixed-income apartments in the Chicago area, according to his partner and senior managing director Nathan Taft.
The purpose of a company is not just to make a profit. Taft says it is attracting investors by promising to inject much-needed capital into aging properties to improve the lives of its residents.
“Our goal is to restore the structure of our communities, and it always starts with providing affordable, quality housing,” said Taft. “It’s pretty shocking that in the US you can go five blocks in one direction and find a completely different ending to your life.”
Jonathan Rose purchased Englewood Gardens with the $525 million Rose Affordable Housing Preservation Fund V. , fire and safety improvements.
“We are currently planning to spend up to $1.7 million,” says Thomas. “But we have access to other capital if we need it.”
Fusco is retiring and is selling its entire affordable housing portfolio to Jonathan Rose, according to Max Jauer, director of acquisitions at Jonathan Rose. In 2020, the company purchased Fusco’s Pheasant Run/Hunter, a 176-unit Section 8 community in Orlando Hills, followed by him acquiring Lake Grove Village, a 458-unit skyscraper on the Southside in 2021. did.
In 2022, it will purchase Archer Courts, a 146-unit Section 8 community in Chinatown, from Fusco for $11.6 million, and later this summer, Barbara Jean Wright Court, a 272-unit low-rise residential complex in Fusco. I am about to complete my purchase of Apartments. , Section 8 development at 1354 S. Morgan St. just north of Pilsen. The company will also purchase Fusco’s 51st and King Drive Apartments, a 96-unit Section 8 community at 5035 S. King Drive in his Grand Boulevard neighborhood.
Local officials have applauded Jonathan Rose for his commitment to preserve and improve conditions at Englewood Gardens, managed by 5T.
“We want our longtime residents to retain their place in the community and Rose’s ownership ensures long-term affordability for existing tenants, ensuring Englewood Gardens and all of its residents We will provide major renovations that will significantly improve the quality of life of people,” South said. sidealdo. Roderick Sawyer in a statement.
Founded in 1989, Jonathan Rose currently owns approximately 18,000 units nationwide. Developed or acquired over $3.2 billion in real estate. Across the Chicago area, 5T Management owns or manages over 1,000 of his homes, including affordable market-priced homes.
5T Management CEO Deona Thomas said the partnership between the two companies is a natural one. They have known each other for over a decade before him, and for years have sought to work together towards mutual goals, including improving communities such as Inglewood.
“We want residents to be proud of where they live,” she said. “That’s the ultimate goal.”