Chicago space builders obtain $ 82 million to finance historic refurbishment at Aurora – Industrial Observer
A group of partners from Aurora, Illinois who run the investment and development company Fox Valley developerCommercial Observer learned that a public and private funding package of approximately $ 82 million has been completed to advance the refurbishment of an old Aurora hospital campus that was designated a Historic Landmark earlier this year.
The funding will facilitate Fox Valley’s redevelopment plans Old Copley Hospital, an abandoned 9-acre hospital campus in 506-532 South Lincoln Avenue in Aurora, a suburb on the Fox River, west of Chicago.
Improved Capital Provided a bridging loan to cover nearly $ 32 million in state and state tax credits and $ 3 million in Commercial Property Assessed Clean Energy (C-PACE) funding. East West Bank was recruited as a historical tax credit investor to partner with the developer, reducing tax liability through discounts granted by the program.
The funding package also included initial mortgage debt of $ 34.5 million from an undisclosed Boston-based debt fund. The developers also received $ 12 million in funding from the City of Aurora, of which the City Council unanimously approved development in November 2019. The remaining $ 108 million of proceeds from the capitalization are equity that will be provided by the project partners.
D2 capital advisor – the debt and equity advice of D2 organization – arranged the home loan on behalf of Fox Valley with the tax credit advisory firm Bracket partnerwho helped structure the package that closed on December 18th.
Upon completion, the site will offer a mix of 96 independent senior housing units for assisted living and memory maintenance, as well as an independent flat-sharing community with 53 residential units to accommodate tenants with cognitive and / or developmental disabilities. There will also be sports park space and approximately 86,000 square feet of medical office space, which will house healthcare administrative offices, an emergency clinic, and a pharmacy.
Management management solutions was tapped to manage the senior residences, and Johnsburg, Illinois Konrad construction is the general contractor for the project, sources said.
The month it was approved by the Mayor of Aurora, Mayor Richard Irvin claimed that the project, which is on the east side of the parish, represents the largest investment in the area “in generations, perhaps the largest ever,” according to a report by The Aurora Beacon News. At that point, the estimated cost of the approved project had dropped to around $ 128 million The Beacon News.
Vice President of D2 Capital Advisors Jack Cortese In a statement accompanying the deal, it said his group had to overcome the hurdles of “finding a lender who not only agreed to C-PACE [financing]but also had experience with tax credits. “
He added that while his team was able to compile sources of credit, there were additional challenges “introducing them to senior citizens’ products and educating them about the independent housing community amid the pandemic.”
Built in the late 19th century as a small hospital with space for around two dozen beds, the site has expanded several times over the years to accommodate more patients and a variety of health services, before closing in 1995 to make room for the brand new ones Rush Copley Medical Center that opened this year.
Fox Valley bought the property two years ago to revitalize it. In February, the Old Copley Hospital was officially expanded the National Register of Historic Placeswhen it was the country’s first “purpose built city hospital” when it opened in 1888; In addition to providing standard care for patients, it also provided maternity and surgical care. Historical advisor to MacRostie‘ Rachel BarnhartNorthern Public Radio announced in February that the nomination for listing the site on the national register was made by Northern Public Radio.