Mixed-use development at 5050 S. Prairie receives Community Development Grant

The City of Chicago has awarded a $4.3 million Community Development Grant to the 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 now receive $4.3 million in funding through the Community Development Grant. Other funding sources are expected to include equity and a HUD loan. The city sold the city-owned parcels within the project to the developer for a total of $300,000.

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. City Council granted a rezoning of the site back in July 2022, so the project is fully approved and has secured another piece of funding. A timeline for construction is currently unknown.