Mark Twain Apartments

Pembrook Community Investors Fund III LLC provided a $16.6 MM first mortgage bridge loan for acquisition, pre-development and pre-syndication expenses for the Mark Twain Hotel, a 153-unit unsubsidized Single Room Occupancy property, built in 1932, and located at 101-113 West Division Street in the Gold Coast neighborhood of Chicago, Illinois. 

Chicago lost an estimated 2,200 SRO units between 2011 and 2014 which led to the City passing the SRO Preservation Law in late 2014. The law requires that SRO owners seek to obtain a buyer who will maintain the property as long-term affordable housing, or pay fines into a preservation fund combined with relocation expenses for displaced residents. The Mark Twain Apartments was the first SRO to be converted under the new Preservation Ordinance law.

The Mark Twain Hotel was a five-story SRO hotel with eight retail stores located at grade level. The SRO hotel contained 153 units, consisting of eight double units and 145 single units. During renovation the unit count was adjusted to include 10% handicapped accessible units, leaving a total number of 144 revenue-generating units post renovation. The property also includes a 9,060-SF retail component with eight grade-level stores.

The sponsor, The NHP Foundation, is a not-for-profit entity formed in 1989 that preserves existing buildings as affordable housing by acquiring a majority of its properties from financial institutions and private owners using commercial bank financing, permanent tax-exempt bonds, and Low Income Housing Tax Credits. Since 1989, NHP has preserved 57 multi-family properties with 11,156 apartment units, earning a reputation for providing clean, safe affordable housing for low-to-moderate-income families and seniors, as well as for its extensive and creative Resident Services programs. The projects have stimulated the improvement of surrounding properties and helped stabilize neighborhoods.