September 10, 2014

Historic Strand Hotel Approved for Conversion into Affordable Apartments


The vacant Strand Hotel in Woodlawn will be converted to affordable apartments through financial measures approved today by City Council.

The $23 million project by Historic Strand LP will create 63 units of rental housing within the 100-year-old building. Located at 6315 S. Cottage Grove Ave, the rehabilitation will be made possible through $2.7 million in Tax Increment Financing (TIF), a $4.7 million loan, $3.3 million in historic tax credit equity, $294,000 in donations tax credit equity and $1.2 million in Low Income Housing Tax Credits that will generate $12.4 million in equity for the project.

The five-story complex will feature studio and one-bedroom apartments with ground floor retail space. Fifty-three of the units will be made available to residents that earn up to 60 percent of area median income, nine will have market-rate rents and one will be reserved for an on-site building manager.

The City acquired the building in 2002 through a tax foreclosure. Valued at $675,000, the property would be provided to the developer for $1.

The building was placed of the National Register of Historic Places in 2013 as the last residential hotel of its type in Woodlawn. The City acquired it in 2002 through a tax foreclosure.


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