City Council approves land sale and funding for 5050 S. Prairie

The Chicago City Council has approved the land sale and Community Development Grant funding for a mixed-use development in the works for 5050 S. Prairie. Located at the intersection of S. Prairie Ave and E. 51st St, the project is made up of multiple lots, including both privately-owned and city-owned. The project is being developed by KLY Development.

With a design from 1919 Architects, the new project will see the construction of a new four-story mixed-use building. Holding 49 residential units, the project’s unit mix will consist of three studios, 14 one-beds, 31 two-beds, and one three-bedroom apartment. Along the ground floor, 4,400 square feet of retail space will occupy the corner, with seven of the residential units located to the north along S. Prairie Ave. Most units will come with outdoor balconies, and 29 parking spaces will be provided along the alley.

The $15.8 million development will be funded with a $4.3 million Community Development Grant, $2 million in equity, and $9.5 million in lender financing. Other funding sources are expected to include equity and a HUD loan. The city is selling the city-owned parcels within the project to the developer for $1.

To meet ARO requirements of 5 units at 60% AMI, 2 units will be in the building, 1 unit will be at the developer’s property at 1337 S. Central Park Ave, and a fee in-lieu will be paid for the final two units. 

With City Council approval secured, the project’s funding is secured, and the land can be acquired by the developer. The project can now move forward with permitting and construction.