The Covent Apartments
Affordable Housing in Chicago, Illinois
Constructed in 1906 and originally attached to a 2000+ seat historic theater, The Covent Apartments is a 3-story property that functioned as an SRO (single resident occupancy) hotel. Prior to a massive revitalization completed in November 2023, it consisted of 64 hotel rooms with sinks and closets. Residents had access to two large shared bathrooms.
The property also comprises seven retail stores and an 18,700 square foot parking lot leased to the neighboring US Postal Service and includes a lounge for residents. It is located across the street from a City Target and several municipal bus lines. This property is being preserved in accordance with Chicago’s SRO Preservation Ordinance, which passed in November 2014.
REDEVELOPMENT
Total Cost
| $21,467,437 |
Description
The rehabilitation of The Covent Apartments, located in the Lincoln Park neighborhood of Chicago, consisted of a gut renovation of the historic residential room hotel. Commercial ground floor bays were maintained, while the 64 SRO units on the upper two floors of the building were converted to 30 studio apartments featuring kitchens and bathrooms in all units. The building’s mechanical and electrical systems received upgrades, and indoor and outdoor community spaces have been added.
Financing
Secured financing and funding for this redevelopment project included:
| $5,673,002 | 4% LIHTC Equity |
| $3,500,000 | City of Chicago HOME Funds |
| $1,500,000 | City of Chicago Affordable Housing Opportunity Funds |
| $4,908,057 | First Mortgage |
| $3,097,846 | Illinois Housing Development Authority Supportive Housing Funding |
| $2,580,732 | Federal Historic Tax Credit Equity |
| $84,675 | Cash from Operations |
| $78,060 | Deferred Developer Fee |
| $44,964 | ComEd Energy Grant |
ACQUISITION
Total Cost
| $7,850,000 |
Description
The Covent Apartments is comprised of 64 SRO units with sinks and closets. The property is unrestricted, but serves a low income population due to the surrounding community’s demographic profile.
Financing
The Covent Apartments purchase price was $7,000,000. Secured financing and funding for this project included:
| $5,000,000 | Community Investment Capital |
|---|---|
| $2,200,000 | Chicago Community Loan Fund |
| $650,000 | Owner Equity |