A joint venture between General Partner Visionary Ventures NFP and R4 Capital LLC has secured $18.2 million in construction financing for the 47-unit Fox Valley Apartments, an affordable workforce housing redevelopment in Aurora, Ill. D2 Capital Advisors arranged the financing on behalf of the developer. Legacy Bank & Trust Co. provided the loan, which is set to mature in 2025, according to Kane County records.
The Illinois Housing Department Authority awarded the developer 9 percent Low-Income Housing Tax Credits. The project also qualified for State and Federal Historic Tax Credits. Additional financing came from a roughly $3 million, 52-year self-financed junior loan, with an interest rate of 3.1 percent, according to public records.
At least 30 percent of units will be set aside for individuals earning 30 percent or below of the area median income, while the remaining units will be set aside for individuals earning 60 percent or below of AMI.
A much-needed redevelopment
The project comprises the adaptive reuse of two vacant historic school sites in Aurora, the former Mary A. Todd School and Lincoln Elementary School, located at 100 Oak Ave. and 641 S. Lake St. The properties are within 2 miles of each other and close to the Northgate Shopping Center and McCullough Park. Several other retail, dining and entertainment options are available within a 1-mile radius.
The Todd School is planned to include 11 housing units as well as a health clinic for low-income families, while the Lincoln School is slated to include 14 housing units. Moreover, the developer will build a new two-story building comprising 22 units. Both sites are located within an Illinois Rivers Edge Redevelopment Zone.
D2 Capital Advisors’ Jack Cortese and David Frankel sourced the construction lender, Legacy Bank & Trust Co., which will bridge both the 9 percent LIHTC equity and the Historic Tax Credit equity.