Golub & Company and Farpoint Development have acquired Chicago-based Prairie Shores, a large-scale workforce housing apartment community. No financial terms were disclosed. The transaction is backed by Goldman Sachs Urban Investment Group.
CHICAGO, Nov. 5, 2019 /PRNewswire/ — Chicago-based real estate development firms Golub & Company and Farpoint Development are excited to announce the acquisition of Prairie Shores, a large-scale workforce housing apartment community in Chicago’s Bronzeville neighborhood. The Goldman Sachs Urban Investment Group is the largest equity investor in the acquisition.
The 20-acre Prairie Shores campus, located between 26th and 31st Streets on Martin Luther King Drive, includes five, 19-story towers with a total of 1,675 residential units. Originally developed between 1957-1961, the campus was a pioneering development incorporating post-war modern architecture. Its amenities include easy access to the lakefront, several fitness centers and resident lounges, expansive and tranquil green space, a large dog park and more.
“The property’s close proximity to Chicago’s central business district and increasing number of new residential, retail and entertainment offerings in the adjacent South Loop area made Prairie Shores uniquely attractive,” said Michael Newman, principal, president and CEO of Golub & Company. “Prairie Shores has been a mainstay in the Bronzeville neighborhood since the late 1950s, and we plan to build on its solid reputation while continuing to serve the hard-working families and individuals who currently live there.”
The community is part of a Near South Side section of the city that is flourishing from new development and destinations including the Wintrust Arena, Historic Motor Row, McCormick Place, and new hotels and restaurants. Residents enjoy close proximity to major thoroughfares, expressways and expanded bike lanes along South King Drive. Metra lines and multiple CTA bus stops offer a short commute to the downtown business district. The 31st Street Bridge directly connects pedestrians to the Lakefront Trail and Margaret T. Burroughs Beach, providing access to numerous types of outdoor recreation.
Farpoint Development is also leading the team that is developing the former Michael Reese Hospital site, which neighbors Prairie Shores, into Bronzeville Lakefront, a transformative project that will be a mixed-use technology, retail and hospitality space encompassing more than 100 acres of pristine Lake Michigan real estate.
“We are thrilled to partner with Golub & Company and the GS Urban Investment Group to bring Prairie Shores into our portfolio,” said Scott Goodman, principal of Farpoint Development. “The Bronzeville community is already one of Chicago’s proudest, and its future is equally exciting. We also look forward to bringing Bronzeville Lakefront, Chicago’s most dynamic lakefront community, to life in the coming years.”
Collin McKenna and Michael Goldman of Golub & Company and Rami Peltz and Eric Helfand of Farpoint Development negotiated the transaction. The seller, Draper and Kramer, was represented by HFF, which was acquired by JLL on July 1, 2019. The brokerage team included Sean Fogarty, now with Artisan Capital Group, Kevin Girard, Wick Kirby and Marty O’Connell. Financing is expected to be provided by ACORE Capital, a leading commercial real estate finance company. Stephen Skok, Matthew Schoenfeldt and Christopher Knight of JLL along with Bill Barry of Draper and Kramer worked on behalf of the new ownership team to place the acquisition loan with ACORE Capital. Terms of the transaction were not disclosed.
“We are proud that through our investment in Prairie Shores we are helping Bronzeville residents access quality, workforce housing, a key pillar in every healthy neighborhood, for years to come,” says Margaret Anadu, the Head of the Goldman Sachs Urban Investment Group. “We are excited to make this investment alongside Golub & Company and Farpoint Development.”
About Golub & Company
Since its founding nearly 60 years ago, with three generations of professionals working in the business, Golub & Company has built a strong reputation as a trusted co-investor and developer with its many institutional and private capital partners. It’s a reputation based on track record; Golub and its affiliates have owned, leased or managed more than 50 million square feet of commercial, mixed-use and multifamily real estate properties, including 45,000 residential units, valued in excess of $10 billion located across the United States and internationally. Access more information by visiting www.golubandcompany.com.
About Farpoint Development
Farpoint is a Chicago-based real estate development company with extensive experience in managing large scale development and redevelopment projects. With more than 30 years of experience, Farpoint’s principals have created some of Chicago’s most iconic and innovative commercial office and mixed-use projects, totaling more than five million square feet valued in excess of $1 billion. From ground-up development to adaptive reuse and historic rehabilitation, Farpoint strives to use its diverse experience in all facets of the development process to unlock hidden potential in every opportunity. For more information, visit Farpoint Development at www.farpointdev.com.
About Goldman Sachs Urban Investment Group
The Goldman Sachs Urban Investment Group (UIG) makes investments and loans that benefit underserved communities in the US through its comprehensive community development platform. Since its inception, UIG has committed more than $8 billion, facilitating the creation and preservation of over 36,000 housing units – the majority of which are affordable to low, moderate and middle-income families – as well as over 2,700,000 square feet of community facility space and over 10,400,000 square feet of commercial, retail, and industrial space.
About ACORE Capital
ACORE Capital, LP is a commercial real estate finance company focused on originating, acquiring and managing first mortgages, B-notes, mezzanine debt and preferred equity throughout the United States. ACORE, which is an acronym for Alpha Commercial Real Estate, specializes in providing borrowers with customized financing solutions at competitive rates and flexible terms. For investors, ACORE is focused on generating alpha through attractive commercial real estate debt investments coupled with superior risk management. For more information, please visit www.acorecapital.com.