Coming Home Again

Mark Foreit is a developer and manager of properties that focused primarily on the north side of Chicago, managing a four-unit rental building in the Ravenswood area and converting a seven-unit property into condos in Andersonville. He began looking for another investment in the area, and expanded his search to include Logan Square, Rogers Park and Albany Park communities. Property values, however, were pretty high and he had difficulty finding a good deal.

"I stopped looking on the north side after a year, and focused my efforts on other communities in Chicago," said Foreit. He began to look on the south side of Chicago and in particular, the South Shore community, because he wanted to take "part in rehabbing a neighborhood that my family grew up in."

Forfeit found two multifamily apartment buildings, a six-unit and a 13-unit, which he purchased at a fraction of the prices found for similar properties on the north side. They are located in a rough, high-density rental section of South Shore.

While capital has been invested in South Shore over the years, inadequate funding and poor property management have plagued some of the buildings. Landlords have begun to organize and meet to address problems that affect their properties. More attention is also being focused on the community in general, as 79th Street may become a TIF district in the near term, which will extend from Stony Island to the west and Lake Shore Drive to the east.

Both of Foreit’s properties required some improvements, but the current rent levels and market values of the properties would not support significant renovation without subsidies or flexible financing. Through CIC’s Flex Fund Program, Foreit received two loans, both of which exceeded 80% of loan to value, enabling him to preserve and improve the buildings while offering affordable rents to the community’s tenants. "CIC gave me the financing I needed to do the job completely and to be successful," said Foreit.