Back in June of 2004 we reported on one of the many schemes that have been schemed for the landmark Rosenwald Apartments – its conversion to condos at a $55 to $60 million sellout.
Here’s the latest, from the Sun-Times’ David Roeder, on the Rosenwald Apartments, a block-long complex at 47th and Michigan:
But after many years, it’s possible that something positive is finally happening with the Rosenwald. A partnership run by Landwhite Developers LLC, with offices in Chicago and New York, has a contract to buy the property from its Skokie-based owners, AMA Realty Group LLC.
Landwhite specializes in renovations for affordable housing in the Midwest, but this would be its first project in Chicago. It’ll be a gut rehab and a gut check.
David Roos, executive vice president of Landwhite, said he wants to convert the building into 332 units of senior or family housing, all reserved for low-income families. The project might cost $170 million, he said.
$170 million for 332 units? Do the math, and weep.
Whats with the “shock”? Rehabbing historic structures costs more than new construction and typically low income projects are built to higher “spec” than market rate (i.e. copper/cast iron plumbing vs plastic/pvc – not allowed in this case in Chicago, but along those lines). Plus its been vacant for a while and will need all kinds of remediation work I’m sure, plus it’s a historic structure, etc, etc… And of course, you are assuming that the Sun-Times got the numbers right to start with.
SheridanB,
My reaction isn’t shock – been around too long for that. It’s disgust.
Given the huge need for low-income housing, how can anyone justify spending these kind of numbers per unit? How has the process become so unhinged that these kind of numbers aren’t so unusual? Whose interests are being served by the current “affordable” housing approach?
I can’t make any sense out of it when I measure it against the need.
As to the historic structure – well, don’t some historic structures need to meet the wrecking ball?
They can tear it down and rebuild it like the original structure if they are so worried about the fascade.
It’s simple, it’s a worthwhile historic structure. This is one building which shouldn’t be torn down. If it was really so cheap to provide affordable housing there would be developers lining up to do it…..
If this structure were so “worthwile” there’d be developers and / or preservationists lining up to pay to save it. It’s been a vacant hulk for how long now?
You could buy two, three, four, even five times as many decent existing units for low-income tenants in the open market. How can it possibly make sense at $500K a unit? We’re talking about scarce resources for low-income housing, and their use for this turkey, to me, is appalling.
Have you spent much time around this area?
A more basic question is why is this ugly building being landmarked? It is an eyesore that should be torn down P.D.Q.
we live within a block of the rosenwald building. we own. the development idea is another conventional approach that does not work. with 450 units and a few smaller apts for subsidized rents, most homeowners in my neighborhood know this is more of the same, and probably not alot different from what was torn down on state. when $100M on the table, the fact is developers (ny for that reason!) makes theirs off the top. they don’t care about local security and they never make any real money on mgmt. we are discussing as if the building has to be m mostly residential and conventional development, just more of the same where politicians are involved- medicore, marginal and minimal. where is the commercial development? no discussion anymore about a badly needed supermarket? what is status of walmart and a debate on pros and cons? waz up with the harold washington cultural center? do we ever see the alderman? why can’t the police control our streets like other neighborhoods? where do seniors and families participate in any large numbers in the community? when we question more subsidize housing, why does one assume we are the rich pushing on the poor? are we not entitled to a say or to hear real progress as it pertains to positive investments in bronzeville? what is the purpose and role of state reps and congressman if we never see them and when we do….we still don’t know or cannot see what they do wortth noting. what formal plans do they have that we need to see from the public officials? ….i mean really you’all. seems another sham in fhe face taxpayers – no wonder there is so much apathy in bronzeville. who is pushing for a change? help me somebody please…. because i am another disivestment soul.