Chicago City Wire

Chicago's City Council has given the green light to a financing plan for Thrive Exchange South, a new six-story mid-rise building at the intersection of 79th Street and Exchange Avenue in South Chicago. This development, aiming to boost affordable housing, will feature 43 residential units and a retail space on the ground floor. Amenities include a community room, management office, laundry facilities, workout room, bike storage, and parking.

Financing for the development derives from various sources, prominently featuring up to $18,500,000 in tax-exempt housing revenue bonds issued by the City of Chicago. These bonds are expected to generate 4% Low Income Housing Tax Credits (LIHTC), bringing in at least $14,900,234 in equity. Additional funding includes a $13,100,000 TIF grant from the Avalon Park TIF district, a $675,008 grant from the Department of Planning and Development's Chicago Recovery Plan, and a $5,700,000 loan from Department of Housing soft funds. The project also expects resources from a private loan, grants from ComEd, GP Equity, and a deferred developer fee.

A crucial part of the ordinance encompasses the transfer of a City-owned lot to developers for $1. DL3 Realty Advisors, LLC is heading the project development, while Thrive Exchange, LLC will be established as a dedicated entity. It will comprise Managing Member DL3 Thrive Exchange LIHTC South, LLC, and investor member National Equity Fund Assignment Corp, holding 0.01% and 99.99% ownership stakes in Thrive Exchange, LLC, respectively.