Stepping Up in Greater Chicago Mar30

Stepping Up in Greater Chicago

Sometimes the worst of times bring out the best in our efforts to help each other. That’s been the case at Connections for the Homeless, a non-profit organization in Evanston, Ill. that has delivered tremendous results over the last perilous year. “The three ribbons on our logo represent the three parts of our community that we partner with to do this work: our staff, our participants and our community supporters,” said Betty Bogg, Executive Director of Connections since 2015. “We see ourselves as the scaffolding by which community intentions for improvement can be constructed. We are there to help the community solve this problem.” Prior to the pandemic, Connections operated a tightly packed space in an Evanston church basement that sheltered a maximum of 18 male-identifying clients, on any given night. The agency also offered drop-in services to help engage community members experiencing homelessness ­­via – sack lunches, showers, a clothing closet, and nursing care – in an effort  to gradually build trust and rapport with participants who might ultimately be ready for housing assistance. “Even before lockdowns started, we were already discussing how we might respond (to the pandemic),” recalled Bogg, who is the sister of Yardi’s Nancy Bogg. “We knew we needed many more shelter beds. When Illinois’ shelter in place order went into effect, we didn’t know how we would do it or pay for it, but we decided we were going to put people with no place to go, into hotels for shelter.” Funding and finding, a path forward What happened next is a classic “if you build it, they will come” tale. In January 2020, Connections expected that its operating budget would be around $5.5 million, and it would again serve around 1,400 people with the help of 1,200 volunteers as they did in 2019. As for so many industries and non-profits worldwide, the pandemic changed everything. “We began our plan to place people in hotels, still not knowing how we were going to pay for it,” recalled Bogg. “We had about 100 people that we’d gotten off the street and into hotel rooms. And then we experienced a second wave of people in need of support who had been completely off our radar. People began coming to us who had previously been very precariously housed.” They included relatives of nursing home residents, who had been able to bed down on a relative’s couch or cot while helping to provide care. Another group was families who had been packed into shared small apartments with other families and found themselves pushed out due to COVID concerns. And there were those unusual but unforgettable stories like one cancer patient, who spent her entire life between chemo treatments on Chicago-area transit systems. “Her nurse told us that they could not believe the difference they saw in her health, as soon as she began getting three meals a day and sleeping in a bed every night,” recalled Bogg. She saw the experiences of those Connections helped firsthand, as for five months, she chose to live during the week at the same hotel where Connections provided 200 rooms of comprehensive emergency housing. They also provided three meals a day, which were purchased from local restaurants, pushing money back out into the local economy at a time when it was badly needed. Funding for hotel operations was made possible by support from private companies and individuals, including Yardi, who stepped up to help. Additional staffing was also a must, and Connections added 30 people to its team. Ultimately, the non-profit’s 2020 operating budget ended up being $12 million, more than doubling expectations. “Yardi had supported us with small donations in the past, but we were really surprised when suddenly that support increased substaintially right when we didn’t know how we were going to fund all that we were trying to do. The community response was incredibly inspiring,” Bogg said. Private...

Chicago Multifamily Apr08

Chicago Multifamily

With healthy demand almost balancing out supply, Chicago’s multifamily market seems to have left the fear of overbuilding behind, at least for now. The city has been adding jobs at a more accelerated pace—particularly in the construction, manufacturing and education and health services sectors— and has been strengthening its tech hub status, which fueled demand for housing across the metro. According to a recent Yardi Matrix multifamily report, at the end of last year, rent growth reached the highest value since 2016—2.5 percent, which, although still below the national rate, represents an achievement for the market. Growth was mainly led by suburban submarkets such as Grayslake and Chicago-Heights North, but several neighborhoods near Downtown, including Hyde Park, Bronzeville and South Shore, also recorded rent increases. Yardi client Pioneer Acquisitions is a multifamily investor with a portfolio of roughly 2,000 units in Chicago. James Peterson Jr., founder & principal, said that “the fundamentals in Hyde Park are very strong” and the neighborhood has been attracting a lot of interest from investors and residents priced out of Chicago’s core areas. Peterson reveals what other submarkets are strong for investment, the evolution of rent growth in 2019 as well as the company’s strategy for the year ahead. What are the strengths and weaknesses of Chicago’s multifamily market? Peterson: Strong demand remains one of the main strengths of Chicago’s multifamily market, particularly in Hyde Park and the far north side neighborhoods. We continue to see tenants being priced out of near north side neighborhoods and moving north, along the “L” lines, to find units that fit their budgets. One of the main weaknesses, particularly downtown, is the continuing introduction of new supply with elevated amenities and leasing incentives, which encourages tenants to trade up to newer buildings. Soaring real...

SMASH in Chicago Sep23

SMASH in Chicago

Yardi is headed to the Windy City, along with throngs of senior living providers, to attend 5th annual SMASH summit taking place October 1-3 at the Loews Hotel O’Hare in Chicago. The conference is geared toward sales and marketing professionals intent on learning new strategies to make their communities stand out. Attendees will choose from workshops focused on content marketing, digital marketing, leadership and innovation, sales management, small teams marketing and technology to discover actionable takeaways. The conference also features many insightful speakers, including Yardi’s own Richard Nix, senior director of senior living, who will share insights about using customer relationship management (CRM) in senior living to supercharge marketing efforts, strengthen client relationships and ultimately drive occupancy. Nix says: “I’m honored to be speaking at SMASH this year. This conference is all about sharing with and learning from peers in the industry, so I’m excited to offer some strategies for senior living providers to increase their efficiency and grow their communities.” Other presenters include keynote speakers Kate O’Neil, tech humanist and author, and Chuck Harry, National Investment Center (NIC) chief of research and...

Apartment Idol

For musicians Jay Filson of Nasvhille and Jeremy Gentry of Chicago, a year of free rent in a brand-new apartment building is a golden ticket while they work toward establishing fledgling music careers. And for Chicago-based Magellan Development Group, a Yardi client, hosting the two musicians as “Artists in Residence” at its new properties is an amenity so unique that it has garnered significant press attention. Filson and Gentry are the inaugural winners of a creative lease-up competition held by Magellan as it marketed The Sobro in Nashville, and Exhibit on Superior in Chicago. The goal was to find Artists in Residence who would perform at the communities and provide music lessons to residents in exchange for a year of free rent. The Contest Each Artist in Residence winner competed against dozens of other musicians who submitted videos about why they were the most deserving and talented applicants. A live final performance, a la American Idol, concluded the competition. “Our Magellan principals envision this musician/artist in residence as teaching, playing, connecting with our residents in a variety of ways. They believe that music brings people together,” said Sherri Cuda, Director of Leasing for Magellan. Both Filson and Gentry are newly out of college and each was struggling to figure out what next steps their pursuit of a music career would take when they heard about the “Sobro Star” and “Exhibit A-Lister” competitions. Gentry, who works at one of Chicago’s dueling piano bars in the evenings, was thinking of moving back in with his parents. Filson had been working in marketing but knew that music was really the passion he wanted to pursue. “This is the kind of opportunity that does not come up, ever,” Gentry said. “I’m hoping that before next year I can make some original music. That’s my goal, to release an EP or a short album of original music before my time is done here.” Filson has a similar plan. He was working at his alma mater, Indian Wesleyan University, when the opportunity to compete for free rent in “Music City USA” came his way. “I tried not to get my hopes up too high but it just seemed like such a perfect opportunity,” he said. “And then it worked out, so I packed up all my stuff and moved to Nashville.” Since arriving, he’s been working on establishing a broad base of contacts and exploring the local music scene. “People here really do care about music in a really exceptional way. So it’s fun to be able to play for people and residents here that really love music and are open to hearing new artists,” Filson said. Benefits all Residents As part of the terms of the contest, each Artist in Residence puts in 30 hours a month of musical contributions toward their community. “We get a great deal out of it, but the residents get in house entertainment on a regular basis,” said Filson, who often mixes his own original work with mash-ups from popular artists like Eminem. “I’ve been playing by the pool, playing any events we have, and playing events at other Magellan buildings,” said Gentry, who is trained as a pianist but also plays guitar and drums. To augment his preparation for work at the piano bar, Gentry asks his neighbors for their song requests when he plays at the pool. He also has a list of residents who are interested in lessons and plan to start teaching soon. Expanding Possibilities Cuda says that Magellan plans to continue to roll out the contest in other future lease-ups, with the option to expand the scope. The talent portion of the event garnered significant publicity and attention in both markets. Local public relations agencies helped market it via social media and local news outlets. “In future projects, we intend to tailor the program. We may include culinary, wellness, fitness, or other areas. We...

Sears HQ Repurposed May01

Sears HQ Repurposed

In the United States, the dire need for affordable housing continues. The nation currently faces a deficit of 7.4 million affordable units for those earning less than 30 percent of the local median income. In an effort to develop inexpensive housing in desirable areas, numerous project developers have opted to repurpose existing buildings. Bloomberg reports the account of one such property that is 112 years in the making. Sears Reborn On the West Side of Chicago sprawls more than 1 million square feet of American history. Constructed in 1905, the site served as the original Sears headquarters. It includes a 14-story clock tower, a printing plant, and several additional buildings. Sears occupied the site for 70 years before relocating to its most iconic Chicago home. The site began a slow and unsteady decline, accentuated with failed projects and abandoned spaces. In 2014, Yardi client Mercy Housing Lakefront embarked on a new project at the site, Lofts at Arthington. It would be an affordable housing community that consists of 181 units and on-location social services. Residents would have access to childcare, public transit, and job opportunities in nearby Chicago proper. “We were in a position to come and build affordable housing in a neighborhood with more amenities than more upscale neighborhoods could only dream of,” says Mark Angelini, President of Mercy Housing Lakefront. The redevelopment cost about $55 million. Lofts at Arthington qualified for federal historic preservation tax credits through the National Park Service. It also received low-income housing tax credits from the U.S. Department of Housing and Urban Development. One-third of the units are allotted for residents who earn less than 30 percent of the local median income. The remaining two-thirds have an income cap that is 60 percent of the local median income....

Shifting Skylines Nov12

Shifting Skylines

Several landmark projects break ground in the U.S. just as headlines herald the slowdown of real estate investments by the Chinese. According to a Bloomberg report, American real estate transactions with China are slowing down for the first time since 2011. The loss of momentum is a result of constraints issued by the Chinese government to minimize capital flight. While new investments dwindle, the nation’s skylines are beginning to see the fruit of the past surge: Hong Lei, consul general of China in Chicago, reports that Chinese firms have invested nearly $13 billion in real estate throughout the Midwest in the past 15 years. A recent project, which broke ground the summer, will be one of the nation’s largest investments. With a cost of $950 million, Vista Towers of Chicago (rendering, left) will be the largest real estate investment by a Chinese company in the US. The project is a joint venture between America’s Magellan Development Group and China-based conglomerate Wanda Group. The international presence of Wanda Group spans 300 million square feet of real estate, including retail, commercial, and hospitality. Vista will be the first notable project in The Windy City. Jeanne Gang, a respected Chicago-based architect and MacArthur fellow, designed Vista Towers. Standing 93-stories tall, it will be the third tallest building in Chicago. The luxury site will include a hotel and 406 condominiums. Condo rates will range from $1 million to $18 million. Across the country, Los Angeles records that China is responsible for seven out of 18 land deals made since 2014. Oceanwide Plaza (rendering, left) will be one of the largest Chinese investments in Los Angeles. With an estimated cost around $1 billion, the nearly 5-acre site will hold three towers including a hotel, 150,000-170,000 square feet of retail,...

Fairview Gardens

Over a hundred years ago, a farmer stuck his shovel in the dirt on a small plot of land in Goleta, California. The site has never been the same. The site is now The Center for Urban Agriculture at Fairview Gardens, a non-profit educational facility and working organic farm. The organization aims to nurture the human spirit through interactive public programs and community services.  Two years ago, Angela Miller-Bevan stepped away from her career in corporate advertising and marketing to join the Fairview Gardens team. She began as a volunteer, then worked as an assistant to the Development Director before accepting the position. “I came to promote the mission: to educate everyone—from birth to the end of your life—to know how important it is to eat the right foods and know where your food comes from. And how to eat food we can actually grow right now because we are in a drought. It’s about sustainable community and keeping something alive that has been in our community for so long,” says Miller-Bevan. For decades, Fairview Gardens has served the community through public programs including the Teen Permaculture Apprenticeship and the new Sprouts program. Yardi supports the Apprenticeship Program immersion experience that ranges from six to ten months. The program equips young adults with the skill needed to own and manage their own farms and farm programs. Participants explore permaculture ethics, the slow food and fiber movements, organic agriculture, watersheds, alternative economics, farmworkers’ rights, herbalism, and living soils. Apprentices also learn natural dyeing, making herbal medicines, and harvesting wild edibles. “Most people don’t know that the average age of farmers is 72. It’s sad,” observes Miller-Bevan. “You can’t go to a computer and have a computer grow your food. It’s impressive to see young adults...

Serving in Chicago May28

Serving in Chicago

With a unique mixed portfolio and a passion for giving back to the community, Howard R. Conant Jr.’s Urban Innovations (UI) stands out in Chicago. The property management and construction services firm, established 35 years ago, manages 750,000 square feet of commercial property and 3,700 senior affordable housing units.  UI’s  construction division manages both affordable and commercial construction projects as well as third party projects. Since its origins as a founding developer of Chicago’s River North neighborhood, Urban Innovations has placed an emphasis on contributing to the greater Chicago community. This legacy of service is influenced by Mr. Conant’s personal history and business philosophy. He commented: “We live in a world where businesses wield tremendous power.  From homelessness to education to healthcare to crime prevention to sustainability, addressing critical problems will require more resources than nonprofits and government can provide.  We will solve these problems only when for-profit businesses make solving these problems a business enterprise.  At Urban Innovations, we believe that doing good things for the community is very smart business.” Mr. Conant’s philosophy is demonstrated by the work he performs in the community. He currently serves on the boards of the Lawson House YMCA, Archeworks and Writers Theater, is an active supporter of Human Rights Watch, and participates in mission work with his church. He’s especially passionate about affordable housing and works alongside Urban Innovation employees during the company’s annual service days. Mr. Conant learned and embraced service and giving back to the community at an early age. Mr. Conant’s parents, Howard Sr. and Doris, incorporated advocacy and civic service into their own lives, and were noted supporters of Dr. Martin Luther King’s fight for civil rights in the 1960s. When Dr. King marched in Alabama, young Howard missed school to participate with his mother. He describes the day as a pivotal moment in his life. “That instilled a lifelong commitment, for him, of giving back,” explained Jo Anne Gottfried, Vice President, Marketing, for Urban Innovations. Howard Conant Sr. passed away in 2011. Doris Conant continues her work as a Chicago philanthropist through the Conant Family Foundation. Her passion for fighting back against poverty and homelessness, especially among mothers and children, was a major motivator behind Urban Innovations’ development work in River North. “She recognized that this was an area of town that needed to be rejuvenated. That was a conscious decision on her part,” Ms. Gottfried said. Fast forward 35 years, and River North is no longer a dangerous part of town behind the Chicago Merchandise Mart. Instead, it’s a vital and coveted walkable urban neighborhood, with restaurants, bars, art galleries, loft and apartment living, as well as commercial buildings. The bulk of Urban Innovations’ commercial portfolio is located within this area, and the company maintains an active role in the River North Business Association, which promotes local businesses and sponsors events. Demonstrating UI’s commitment to service, each year, Urban Innovations participates in numerous community service opportunities that bring together their Chicago-based employee team. “This is a group of people that is really willing to pitch in. There is no job too big or too small for anybody on our team,” Ms. Gottfried said. Through the Chicago Cares Business Shares Project, Urban Innovations completes an annual project that involves manual labor on behalf of a school or other public service facility. With the participation of employees from the company’s construction division, real renovation work can be completed even in just one day. And, there’s a job for everyone, whether it is building a planter box, painting a fence or participating in less strenuous tasks. “They do a really good job of keeping everybody involved. The upside for the company is the president standing next to the building engineer using the same paint bucket. That’s an opportunity you just don’t get all the time, and a conversation you don’t have all the time. It’s a good equalizer,”...

MB Real Estate Mar11

MB Real Estate

MB Real Estate (MBRE), a third party manager of multiple high profile commercial buildings in Chicago, sees sustainable property management practices as much more than good environmental stewardship. In fact, when talking to building owners or tenants about sustainable practices, MBRE’s Director of Sustainability focuses on the bottom line. More specifically, the triple bottom line. “It’s a matter of finding that equilibrium between the social, the environmental, and the economic aspect of everything we do,” said Natalie Stanley, assistant vice president for MB Real Estate, a Yardi client. The three pillars of the triple bottom line philosophy: people, planet, and profit, are cornerstones of MBRE’s sustainable efforts, which benefit multiple stakeholders: building owners, tenants, and the community at large. The firm’s portfolio includes five LEED-certified buildings that total 5.5 million square feet, and eight ENERGY STAR buildings that total six million square feet. The green building portion of the MBRE portfolio has been growing every year. The benefits are myriad, Stanley explains. “If you look at all the energy use in the city/world, it is primarily buildings and facilities that use the most energy. If we can collectively work with the owners and tenants to reduce consumption of resources like water and energy, they all benefit from that reduction in operating expenses. Conceptually that will add value to the building itself,” Stanley said. Energy efficiency has been a major thrust of MBRE’s sustainability efforts with building owners. “We focus on the base building systems and the operating schedules of the HVAC system. Changing the operating schedules is really important and that’s an easy fix, because it’s free. The building engineers just have to make modifications to the schedules. That’s an easy one to handle right off the bat,” Stanley explained. “We have most our...

Roosevelt Collection Oct01

Roosevelt Collection

Chicago’s South Loop is about to change for the better. The Roosevelt Collection, a mixed-use residential and retail development owned by McCaffery Interests, will bring an exciting new shopping experience to Roosevelt Road in early 2013. It’s been a long journey for the Roosevelt Collection project, which was acquired by McCaffery, a leading development, retail leasing and property management firm, as a short sale in 2011. It was built by Centrum Properties in 2007, but the retail portion was never leased. Before leasing and moving retail  tenants into the plaza area that will anchor the Roosevelt Collection’s public space, McCaffery completely revamped the area between the shops, which is also home to the ShowPlace ICON theatre, consistently ranked as one of the nation’s top movie houses. McCaffery tore down buildings that had previously been centered in the middle of the plaza, creating a more dynamic, open air space that feels like the perfect place to forge community connections. At a recent Institute of Real Estate Management (Chicago chapter) event, 140 IREM members enjoyed food and beverages in one of the ShowPlace’s private VIP lounges, where moviegoers can enjoy snacks and drinks while they watch the latest blockbuster film. A bar and restaurant are also contained within the theater. Then the group moved on to a tour of the Roosevelt Collection space, which includes green features like a living wall in the Roosevelt Lofts lobby, common gathering areas, creative landscaping, and 340,000 square feet of retail space. There is a 1,500 space parking garage on site that will be shared between the retail and residential property. Though retail tenants haven’t yet been announced, Yvonne A. Jones, CPM, CCIM, Managing Director of Asset and Property Management for McCaffery, told us that the project is nearing its...