Draper & Kramer lists massive Bronzeville rental complex in Opportunity Zone

The developer built the 1,675-unit, five-building Prairie Shores complex in 1961

Feb.February 28, 2019 03:30 PM

Todd Bancroft and the Prairie Shores apartments

Draper & Kramer is looking to sell its Prairie Shores apartment complex in Bronzeville, testing the market for the emerging area near McCormick Place and the federal Opportunity Zone program.

The Chicago-based developer hired HFF to market the 1,675-unit Prairie Shores complex that spans five buildings in Bronzeville, according to Crain’s. Built by Draper & Kramer in 1961, the development now rests at the south end of the growing McCormick Place district, which is seeing renewed developer interest, and is close to the site of the old Michael Reese Hospital that’s eyed for redevelopment.

The development also sits within an opportunity zone, according to Crain’s. It could be one of the first big, local deals to fall within an opportunity zone, the new but already extremely popular federal program that lets investors defer taxes if they invest in the zones encompassing low-income areas.

The complex is being marketed as a rehab opportunity, according to Crain’s. Draper & Kramer already rehabbed 54 units, which rent for a premium. The complex is 94 percent occupied.

Listing Prairie Shores is one of the first major moves under new CEO Todd Bancroft, only the second non-family member to heard the company in its 125-year history. In an interview with The Real Deal, Bancroft said the company would undertake a number of new initiatives, including an expansion to new markets.

Draper & Kramer is not exiting the Near South Side rental market anytime soon. The firm still owns the 2,000-unit Lake Meadows just south of Prairie Shore. Earlier this month, Draper & Kramer started work on its long-planned 275-unit tower near McCormick Place. [Crain’s]Joe Ward

Related Articles

Don Thompson and 212 North Canal Street (Credit: Cleveland Avenue, Google Maps)

VC firm led by ex-McDonald’s chief buys River West office building

Founder, President and CEO of Oxford Capital Group John Rutledge with Hotel Felix and Hotel Julian (Credit: Oxford Capital Group, Hotel Felix and Google Maps)

Oxford Capital designates 5 of its Chicago hotels for coronavirus housing program

The 21c Museum Hotel at 55 E Ontario Street and the Hilton at 720 S. Michigan Avenue (Credit: Google Maps)

More hotels fall victim to coronavirus pandemic

Gov. J.B. Pritzker (Credit: (Photo by Scott Olson/Getty Images)

As clock ticks on small businesses, Chicago offer loan lifeline

Rendering of Bronzeville Lakefront Development & Farpoint Principal Scott Goodman

Farpoint-led team at Michael Reese megaproject lands anchor tenant for innovation center

CEO of VEREIT Real Estate Glenn Rufrano and Topgolf at 2050 Progress Parkway (Credit: Andrew H. Walker/Getty Images and TOPGOLF INTERNATIONAL, INC.)

Vereit pays $50M for Topgolf-leased Schaumburg complex

Taurus Investment Holdings CEO Peter Merrigan and 4000 S. Racine (Credit: Google Maps)

Going strong: Another massive Chicago area industrial portfolio sells

Jeff Bezos and from left: 24101 South Bradley Street, 315 South Hicks Road, 1800-1825 North 5th Avenue  and 3639 Howard Street (Credit: Bezos via Mark Ralston/AFP via Getty Images; 24101 S. Bradley via Venture One; 3639 Howard via Hillwood Investment Properties; 315 S. Hicks and 1800-1825 N. 5th via Google Maps)  

Amazon’s big adventure in the Chicago industrial market