Massive West End Development In Second Phase

The second phase of Habitat Co.’s $200 million mixed-use development, which is one of the largest ever in Chicago’s West End, has officially begun, although a small portion of it has been further delayed.

After rising interest rates and economic uncertainty threatened borrowers, the Ogden Commons project, construction for a four-story, 92-unit building worth $35 million is now underway at 1325 South Washtenaw Avenue, CoStar reported.

The development’s resumption can be attributed to the company’s recent acquisition of outside financing. However, Habitat’s Jeff Head said an 18-unit portion of the master plan that would have been built in another building during this phase is being pushed back, and ensuing phases will also happen gradually.

“Based on where we are now, it probably will continue in smaller phases,” Head told the outlet. “The agencies (financing the development) can only give so much to one project. As far as demand, we could build all 350 units and lease them up because there’s such a demand for affordable housing.”

Funds for the project are coming from the sale of tax credits to Bank of America and construction financing from the bank, as well as Chicago Housing Authority funds and a loan from Illinois Housing Development Authority, among other sources, Head said.

The initial phase for the 10-acre development was completed in 2021 — a 30,000-square-foot commercial building that has lured tenants such as Wintrust Bank, Momentum Coffee and a Mount Sinai Health System express care clinic.

Out of the second phase’s 92 total units, the sizes will range from studios to two bedrooms with 90 percent of them rented at rates considered affordable. Forty percent of units are designated for Chicago Housing Authority residents, Head told the outlet. The second phase should be completed by 2024, and 2026 is the target full completion of the project.

Habitat’s unhurried progression from one phase to the next follows a similar pattern to other developers in the area. In suburban Tinley Park, the developers behind an apartment project downtown are at odds over whether to proceed with the second phase of planned 165-unit project after completing the first half.

— Quinn Donoghue