1251 South Michigan, Chicago
Project Selection
1251 South Michigan may contain a number of the following features but it has been identified by the Steering Committee specifically because it:
| Mixes people from diverse socio economic levels | Y |
| Caters to a range of age groups | |
| Offers a diversity in service types | |
| Employs community engagement in the development process | |
| Is an innovative model designed to accommodate ageing in place | |
| Provides housing options for a particular population groups | |
| Has undertaken conversions and/or changes of use of existing facilities | |
| Uses mixed financial funding bases | Y |
| Has demonstrable Environmentally Sustainable Design features |
The following project description combines information obtained from the Forest City website http://www.forestcity.net/Pages/default.aspx and the 2007 MultiFamily Executive Awards profile: http://www.multifamilyexecutive.com/Amenities/the-apartments-at-1251-s-michigan.aspx
Project Overview
Opened in March 2006 by developer, Forest City, 1251 South Michigan is a high-rise residential community for people over 62 years of age in downtown Chicago. The complex is made up of 91 units including many affordable apartments which are scattered throughout the building.
Why is 1251 South Michigan an innovative project?
This is innovative affordable high rise rental accommodation for older people in downtown Chicago delivered by a private developer. The entire development is rental housing and it is attached to shared facilities in the adjoining luxury apartment complex. Innovation includes the combination of subsidised and higher end rental units in a complex designed to support older people to live in the central business and entertainment area.
The project demonstrates how a private developer with government support can deliver quality well located affordable housing for older people.
Built Environment
Residents have the option of one-bedroom apartments or studios with total living areas from 471 to 710 square feet. Each apartment features oversized windows, fully-equipped kitchens, carpeting and heat and air conditioning units. Within the building, residents have access to a laundry facility, fitness centre, theatre room and resident lounge.
The 1251 S. Michigan building is connected on three levels to the Sky55 tower. Sky55 is Forest City’s mixed-rental apartment complex which provides residents of 1251 S. Michigan with access to a shared seventh floor amenities area featuring a rooftop garden, pool, grilling area, sun deck, outdoor fireplace and hot tub. The buildings are also attached at the garage and lobby levels. Sky 55 combines higher end rental apartments with government subsidised affordable rental units.
Service Model
1251 S. Michigan is a community for older people but no services are provided for assisted living.
Residents are able to purchase their own services or receive government support where it is needed and available. Residents rent their homes on the Forest City ‘Peace of Mind Lease’ which grants immediate lease termination without penalty or reduced rent payments for up to three months if a resident loses their job.
Funding Sources
Both 1251 S. Michigan and Sky55 are 100% rental properties. Sky55 was the first rental project in the predominantly for-sale development of Central Station. “For years and years, Central Station has been advertising their condos, so we really needed to stand out as a for-lease property,” says Adam Siegal, Forest City's vice president of strategic marketing.
Cross-collateralization of the properties raises the overall percentage of affordable units to 35%, qualifying the entire development for tax-exempt bonds and tax-increment funding.
The rents are subsided through a government funded tax incentive scheme with many similarities to Australia’s National Rental Affordability Scheme. Rents vary from $705 to $755 per month.
Target Audience
1251 S. Michigan is a community for those aged 62 and older.
For residents living in the affordable flats, there is a background check that needs to be passed first. The income requirement is between US $17,000 and $33,000.
Project Auspice
Forest City Enterprises, Inc is an $11.5 billion New York Stock Exchange listed national real estate company. The Company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States.
Founded in 1920 and based in Cleveland, Ohio, Forest City’s diverse portfolio includes hundreds of properties located throughout the United States. The Forest City ‘Live’ portfolio consists of apartment communities, adaptive re-use and historic preservation properties, Federally Assisted Housing, military family housing, condominiums, master-planned communities and land for residential use.
Since 1972, Forest City has been actively involved in the management of government subsidised assisted housing communities across the U.S. The organization has developed and now manages 7,763 federally assisted housing apartments in 45 communities across the USA.
