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Considerations and neighbors' discussions of the impact of Antheus Capital and MAC Properties in Hyde Park/Kenwood; projects Solstice on Park, Village Center Presented by Hyde Park-Kenwood Community Conference and its website hydepark.org. Join the Conference and its committees: engage in and help underwrite our work. |
To
page index including to reports on October 16 2007 forum.
Windermere
West hrg. Nov. 15. Rendering and site plan.
Core material here appeared in their original form in these hydepark.org pages: Affordability/Affordable Housing, Development, 56th Cornell, and Village Center. (Look in Affordable Housing page for an article on how an Antheus building became low-cost seminary cooperative housing.)
Note: In early September 2007 it appeared that Antheus Capital would not proceed with plans for a retail and housing development at 51st (E. Hyde Park Blvd.) and Lake Park--and clearly then did not have the backing of Ald. Preckwinkle. But at the October 16 forum, Eli Ungar said planning is proceeding on a phase 1, the parking lot area (and the large building?) and brought before the public. Ungar is seeking to bed on the agenda for the November 19 TIF meeting to discuss that project. In page index find link to latest on 56th Cornell. Meanwhile, Antheus continued to acquire properties at a steady pace, particularly mid to large sized buildings, an in 2008 a troubled building near the Village Center. Ungar roll out plans for the latter at the July 14 TIF meeting, reviewed by committee August 18. .
Mr. Eli Ungar, leader of Antheus Capital and associated MAC Properties, came to discuss and answer questions at a community forum and discussion October 16, sponsored by HPKCC. (Report will be posted as soon as available.) Therefore, this website has assembled in this page what Mr. Ungar has said and others have said about his group's varied realty purchases and plans in the neighborhood starting in 2002. Antheus is based in New Jersey and is active in a number of cities. Projects range from varied rental housing assemblages and management to construction of condominium and other housing buildings (including a few towers) to retail developments. The core activity to date here are 1) assemblage of a proportionately substantial block of small and large rental buildings both scattered and in elongated clusters, 2) plans for a 26-story condo tower at 56th and Cornell in conjunction with the Windermere House, 3) as-yet undetermined plan for redevelopment of Village Center Shopping Center at 51st and Lake Park. All have both fascinated the community and become lightning rods, including apparently to Alderman Preckwinkle.
MAC acquires big
property block, potentially affecting neighborhood housing, quality directions.
MAC Properties (assoc. Antheus Capital of N.J.) adds 43 K& G and 4 other buildings in area, tripling its holdings and becoming one of the largest owners in Hyde Park. Known for rehabbing housing into quality rental; but there are questions about affordable components of the neighborhood--K & G was a major renter to students, though upkeep, service were at times questioned. Down the line some buildings could be sold or go condo. There is no doubt that Antheus and MAC are now major forces in Hyde Park.
Antheus Capital took out a $123 million 10-year loan to complete its purchase of 43 buildings and rehab (Note, 5 on Drexel/ 5600 block that have preservation easements on them were since sold to U of C). A resident asserted that rehab of all the remaining buildings would drive up rents, threatening affordability.
The Hyde Park Herald and the Chicago Maroon reported during the week of April 1 2007 on the March 29 closure of sale of the 43 K & G residential buildings, and 4 other residential buildings, in Hyde Park-Kenwood. Counting its 23 or so buildings already bought in the previous five years (since 2002), MAC now has more than 70 buildings in the area (2800 units), making it one of the largest (non- U of C) owners in the neighborhood. MAC's previous properties, shown previously by the company at public meetings, ran in two wide swaths, south southeast from 51st and Lake Park (Village Center) along Cornell and S. Hyde Park to the Windermere at 56th and Cornell, where it plans to build a 26 story condo building on the parking lot; there is another swath approximately along 53rd southwestward. Locations and concentrations of John McGarry's K & G properties were not disclosed in the media articles. The other buildings bought were two on Woodlawn, one on Greenwood and one on Kimbark, which will remain rental.
Eli Ungar, a lead manager and investor for MAC, had said they are keeping the rental buildings rental, although they now say nothing is forever. Nothing was said about how many and how much buildings would be upgraded or rehabbed, but that K & G had a discerning eye and acquired a portfolio of good, "quintessential Chicago" graystone buildings, mainly 3 and 4 flat, and had preserved many (from tear down?—he did seek upgrade funding for several through selling easement to Landmarks Illinois). MAC would have to take time to decide what to do with each building; some down the line could be sold or turned into condos. Meanwhile, as is Antheus practice, each building will be owned by a separate LLC and managed by MAC, which is moving its office and staff of 60 (at least one from K and G) to the former Day and Nite store in the 1600 block of E. 55th Street.
Asked why the heavy investment in Hyde Park, Ungar told the Herald he studied the area's demographics and thought Hyde Park is a strong market for investing in apartments but not as strong for condominiums as some other parts of Chicago and has little new construction.
Alderman Hairston told the Herald she is pleased MAC will be holding this large block of housing as rental; that there are not enough rental units in Hyde Park, and that the commitment to keep the units rental addresses gentrification fears. [Editor--the latter depends on whether and how many of the units are substantially rehabbed into middle high or high-end rental vs. fixing up as affordable and mixed income rental and managing well.] Gary Ossewaarde, of HPKCC and reflecting discussion with Mr. Ungar at a HPKCC Board meting earlier this year, but speaking for himself, was quoted in the Maroon, "Clearly, they remake the buildings and charge higher rents...On the one hand, it renews the stock; on the other hand, it narrows the affordability in those buildings and the neighborhood." At the vary least, the exterior of many including the brass plaques installed look more classy and desirable than in the past.
On the other hand, vacancies (retail and residential) in many of the MAC buildings as will as others particularly in East Hyde Park, was cited (rightly or wrongly) as contributing to and reflecting a sense that the neighborhood is on the skids rather than on the verge of a gentrification convulsion such as some others fear.
Students of the University had lots of questions for the new manager after they received their notices of change in management and payout of interest on security deposits. The Maroon reported that students interviewed said their K & G apartments are in poor physical condition. Some said service was poor, others that service had been good.
________________
MAC Property's statement of mission in adds such as for Windermere leases. " MAC Property Management is committed to providing exemplary living experiences, the highest possible quality of service and a superior value for our residents. We focus on restoring and renovating our buildings, while adding modern amenities for today's lifestyles. Improving our properties benefits residents, as well as growing Hyde Park Community." They do offer student discounts.
In August 2007 Mary Rose Shaughnessy wrote a letter (following) to the Herald citing possible negative outcomes of the concentration of properties with MAC, the kinds of upgrades and rent increases underway, and inquiring of/challenging MAC/Antheus premises. Much of the material came from Antheus’ own website. (See letter below.) At least two rebuttals (by Mr. Samuelson and Mr. Perovic and an indirect by another) also appeared in the Herald, also printed below. Ms. Shaughnessy subsequently met with Mr. Ungar of Antheus, which she indicated went well, and at which Mr. Ungar offered to meet with the community on concerns, vision and ideas; a meeting set up under HPKCC auspices for Tuesday, October 16, 7 pm at the Hyde Park Neighborhood Club.
Letter of Mary Rose Shaughnessy. Herald, July 25 2007 [For contrary views or more discussion, see letter of Edward Perovic, following. See also the 56th Cornell and Village Center pages and High Rises and Conversions.]
Whoa--is this a Mac Management invasion?
Whoa! What's going on in our Hyde Park? Have you noticed all the Mac Management signs around Hyde Park? Have you heard of Antheus Capital LLC? You should know that this corporation owns over 80 properties in Hyde Park, managed by Mac Management. Take a look at the website of their holdings in Hyde Park: http://www.macapartments.com/mac/a_ch_hp_overview.html.
Be sure to click on the Property List by Address link to see the specific buildings. Chances are you live in or nest door to one of his properties. I do.
Does this look like it's getting to be a monopoly? O, yes, now you remember. Isn't Antheus Capital the one who has big plans for the Village Center? And the Windermere? And isn't it the one planning to put up that tower next to Bret Harte School?
If Antheus Capital continues unchecked--it may end up owning more of Hyde Park than the University of Chicago.
What's wrong with this, you ask? Do we want one man, Eli Ungar of Englewood, New Jersey to have a monopoly in Hyde Park?
We wonder what plans has he got for us? Well, to begin with, he thinks we need more expensive condos. "There are very few options for people interested in a highly amenitized, well-located condo building in Hyde Park," he said about the new tower at 56th Street and Cornell Avenue. "There's been very little new construction of residential buildings in Hyde Park," he claims.
Apparently he missed the highly amenitized new residential developments that have gradually filled every inch of Hyde Park before he arrived in 2002.
Can higher real estate taxes be far behind? And judging from the steel and glass tower he plans for the parking lot next to Bret Harte, he has no idea of what architecture is appropriate to Hyde Park.
Ungar also does not seem to understand the character of the community. Hyde Park has never been a bedroom community of short-termers who come for a few years to work and then move on. Yet that is what Hyde Park could become if the middle-income renters have to move out because they can't afford the new rents after he upgrades his rental properties, as he is doing with the Algonquin Apartments. "Stainless steel appliances, including a dishwasher, are surrounded by granite counter, granite backsplashes and white laminate cabinets. Translucent doors that match the hall closet enclose one pair of cabinets. White subway tiles line the kitchen's far wall, and dark beige ceramic tiles cover the floor," according to Janice Rosenberg in a "Special to the Tribune" March 18.
Stainless steel and granite counters will mean middle-class residents and seniors who are already paying almost half of their income to live in the Algonquin will have to leave. Does he plan to "amenitize" all the 80+ buildings Antheus owns in Hyde Park?
Do we want upgraded buildings at the expense of our long term neighbors? Do we want Hyde Park to become Evanston-on-the-Midway? Do we want to drive out the middle class from Hyde Park? Do we want our real-estate taxes going through the roof?
Is Mr. Ungar interested in us, or is he only interested in the profit that can be made from hot properties for his corporation?
[Ed.: Others emphasize how bad a condition many of K & G's buildings were in and have seen nothing but improvements and only modest rent increases of about 6% so far. There is no doubt that MAC has the ability and presence to be a power and trendsetter in the local realty market and building management.
The Algonquin Antheus buildings seem to have more problems. Delays, partly due to more abatement problems than anticipated, cash flow problems, elimination of union and other knowledgeable staff (which is said to be stretched thin), some steep rent increases, lack of information and communication above all have led to serious concern by tenants, some of whom fear the middle class are being given the bums rush. There is also concern that Antheus/MAC may have acquired too much too fast, have too large a proportion of properties (their proportion is unconfirmed), perhaps have an investment and write-off agenda that could leave abandoned or messed up buildings should markets and other conditions turn sour.]
Shaughnessy adds in letter to the Herald of October 3, 2007:
..Antheus Capital now owns more than 85 properties in Hyde Park--making it the second largest property owner after the University of Chicago. Eli Ungar is good to give us his time to answer our questions about what he has in mind for Hyde Park in the future. Let us take advantage of his willingness to listen and ask him questions. Let us ask him what he plans for all these properties, aside from making a big profit.
Remember that Antheus is an investment capital organization, that Mr. Ungar is from Englewood, N.J., and that his investors are not local. What's in all this for Hyde Park?
He claims he intends to "upgrade" the buildings. That would be nice, but what if it means "upgrading" the rents to the point where middle-class renters ($30,000 to $50,000 annual income) can't afford to live in Hyde Park any longer? Are we going to like losing all these long-time Hyde Parkers who make the community stable and interesting and becoming more of a bedroom community for short-termers?
Hyde Park has been a unique community since its beginning. Do we want to lose our uniqueness just to be upgraded with granite countertops and stainless steel appliances?
There are many sides to "upgrades," not all of which are pleasant, and we need to confront them now, before they happen, with the man who has control over our future.
Let us put forth our case for maintaining Hyde Park's uniqueness as a community. For those of us who don't rent, let us keep in mind that along with the rents going up, our property taxes will go up.
Please come on Tuesday, Oct. 17, 7 p.m., to the Hyde Park Neighborhood Club.
Joseph Samuelson says we can live with Mac Mgt. invasion, says it offers
much improvement over previous owner's neglect.
Without even looking in the White Pages, it was clear that Mary Rose Shaughnessy does not live in a previously owned K&G Building now owned by MAC. Having visited many such buildings in my search for a home in Hyde Park, I was disgusted by the way they were kept. In typical Hyde Park fashion, any time there is a change for the better, people kick and scream.
Thankfully we live in a free society. Clearly the owner of K&G saw a lucrative deal when he sold his properties to Mr. Eli Ungar and so did Mr. Ungar. If Ms. Shaughnessy does not approve of people owning all this property, perhaps she should rethink the values of living in this country. Besides, instead of instead of screaming about Mr. Ungar, why doesn't she address her complaints to the owner of K&G who sold them to him? How is it that she doesn't question his motives or interests?
I have had enough of people in this neighborhood trying to prevent Hyde Park from coming out of the Middle Ages. Of course we need a hotel in Hyde Park We have only one badly run facility and everyone else stays downtown. And then we cry when stores and businesses are leaving the neighborhood.
And of course we need a new supermarket. Why on earth do we need a Cooperative? We do not live in the '50s anymore and we are all worse off clinging to this old mismanaged institution that hasn't paid dividends or lowered its prices in years. Of course the big guys can do it better than a small operation like the Coop. It is time to bring in a Dominick's or Jewel that can bring a pleasant shopping experience and decent prices. Notice I did not write Wal-Mart, although that would be amazing.)
And finally, Hyde Parkers tend to forget that we border very poor neighborhoods, and of course we need the Olympics in Washington Park as a chance to revitalize the South Side. It is about time we got on board and thought about ways to assist and benefit from these developments instead of kicking and screaming. They will happen anyway, and it is up to us to be proud of our assistance and input or be humiliated by their success.
Edward Perovic says Some development needs to happen in Hyde Park, community input becoming community roadblock. Herald, July 25, 2007
The front page of the Hyde Park Herald on July 18 would be comical if it didn't reflect a sad truth about our community. The three front page stories carried the following texts "Residents reject high-rise proposal for Mobil-McDonald's site;" JPAC says no to Olympics;" "Open meeting to be held for Doctors Hospital" and "Whether public approval will be given to demolish." Letters to the Editor offered more of the same.
"Community input" in Hyde Park is becoming "Community roadblock. "Every time a developer or the university proposes a new project, there is immediate outcry. for decades, all these outcries have produced is more vacant lots and boarded-up buildings. Meanwhile, we Hyde Parkers continue to do our shopping, eating and movie-going outside the neighborhood.
While the South Loop and practically every other community in Chicago has seen a dramatic increase in retail and entertainment offerings, we have seen an increase in empty storefronts. Hyde Park's reputation has become one of anti-development and anti-retail. The lack of restaurants and basic necessity retailers speaks volumes. You can create all the TIFs in the world but if retailers are chased away by "community input," the TIFs become useless. It's difficult to raise property taxes on vacant storefronts.
I have spoken to several friends (all Hyde Parkers) after the Herald broke the news about the Doctors Hospital being replaced by a hotel. The consensus was that it's a wonderful idea. Makes perfect sense to have a hotel so close to the museum as well as to serve the visitors to the university and hospitals. The idea of a possible "quality restaurant" within the hotel was exciting (not so much for yet another Starbucks, however!)
My point being that there are many Hyde Parkers who are tired of driving by vacant lots and boarded-up buildings on our way to the north side to watch a movie and do our shopping.
Should the university or developers be given carte blanche when it comes to their projects? Of course not. The first and foremost concern should be parking. Developers should be given notice that Hyde Park welcomes development as long a your development can facilitate the parking needs of your project without creating a parking burden to existing neighbors. Anything beyond that is trivial. Not everyone in a community can be satisfied with any given project.
Surely we can create win-win situations with developers that will bring Hyde Park into the 21st century without sacrificing our academic and cultural traditions. a high-rise or two may be the price we need to pay but it is in all of our interests to set aside the roadblocks and create real community input that will revitalize our wonderful and unique neighborhood.
Does HP have a perceptual land use dilemma- perceptions of density vs
bus. development?
Sylvia Telser writes the August 1 Herald:
Hyde Parkers want successful stores offering a range of products at reasonable prices. Hyde Parkers do not want high-rise development built on currently empty lots and boarded up buildings.
Go to the South Loop and points north and what does one see? Many successful stores bustling with customers. Whence come these paying customers? From the high density high-rise developments surrounding the retailers. It takes a critical mass of population to support purveyors of goods profitably. Will Hyde Parkers ever resolve this dilemma?
More takes on the possible impact of Antheus, from our
Affordability page:
Countervailing the condo conversion trend: niche rental marketers. And disapproval of the thesis that the only way to get property renewal and upgrade is through conversion. (The question is still there, "affordable to whom?", but the units are clearly affordable to many who are well off but not rich.)
In addition to the many retailers that cater to the student renter, and some who provide distinctive middle-income small apartments, are those who say they will not convert but will continue to offer higher end rental apartments. One is MAC Properties, associated with the same New Jersey firm (Antheus Capital) that recently bought the Algonquin Apartments, which now is declared to be staying rental. Another is Regents Park, whose new owners backed away from prospects of going condo (although they reportedly cut services and staff as well).
MAC Properties is buying the famed and landmarked Windermere House from Metroplex; there appears no likelihood of its going condo and will probably add a regional epilepsy and brain disorder imaging and treatment center in conjunction with the University of Chicago Hospitals.
Re the Algonquin, the Herald reported* (Daniel J. Yovich) October 4 2006 that:
The owners of the Algonquin Apartment buildings are continuing an extensive rehab and remodeling project begun by the previous owners and say they have no plans to convert the Mies van der Rohe-designed building to condominiums. "We are in the process of renovating the first two of the (six) building and intend to renovate all of the buildings in the next year or two," said Susie Charendoff, a spokeswoman for Algonquin Management LLC. "We anticipate completing the first units later this year and they will be available for rent. We have no intentions of converting the property to condominiums."
Erroneous speculation and rumor of an impending Algonquin condo conversion have recently made the rounds among Hyde Park real estate and financial circles. The property was purchased from the Habitat Company in February, which had publicly said in 2005 it had plans to convert the 414-unit, six-building complex to condos.
Some Algonquin tenants have been asked to relocate to other buildings as the renovation continues. ... A new fitness facility for the complex is also planned... But some Algonquin residents point to reduced service, holdups on improvements, and rumors of really big rent increases (only 6% to date).
*according to a knowledgeable source contacted, not every detail is right, but the tenor is.)
A bit of reality from the developers of 56th and Cornell (Antheus).
Asked [at the January 4th HPKCC board meeting] about prospects for “affordable” units, the developers said that the market makes it very difficult to build new structures containing affordable owner units, and new rental buildings are completely out of the question in Hyde Park or nearby (none having been built since 1969). The replacement cost for a $5 million-priced building is $15 million and assessments and taxes for similar buildings vary enormously. Programs designed to help, such as Section 8 and Class 9 have now gotten out of balance, so that only desperate landlords will use them---until they convert the building to condos, and those that have a good market for their units will turn down prospective occupiers under these programs who won’t or can’t pay market prices or rents no matter who goes to bat for them. Section 8 at present is not profitable to landlords and is tied up in inspections and other bureaucracy. (Class 9 subsidizes 20 percent (was 33%) for multiple-unit and $16% for single-occupant structures and involves tax breaks if the units are upgraded—but this is no longer profitable and is inappropriate for an owner building, the board was told. Landlords are phasing out of Class 9.) Top
David L. Hoyt gives a tongue-in-cheek reaction to negative comments
on the 56th Cornell development in "Save the parking lot." Mr. Hoyt
hosts the blog "HydeParkProgress@blogspot.com."
I would like to announce the formation of a "Committee to save the Parking Lot" at the northwest intersection of 56th Street and Cornell Avenue This parking lot, a precious relic of urban renewal, may be destroyed forever if plans for a 26-story residential high-rise on the site go through.
The committee stand on the principle that the auto-oriented nature of our city should be preserved, and that plentiful parking lots are the best way to do this. Parking lots reduce congestion by getting cars off the street. A tall building near bus lines and a Metra station would only mean more people would use public transportation. The bus and trains are too crowded anyway, so we don't need more people using them.
The Committee also feels that the proposed structure would attract relatively high-income households. Because these are the types of people who tend to have disposable income, they would probably spend it in our neighborhood. This would only reinvigorate local business, leading to a further reduction in the charming variety of vacant storefronts and marginal retail services we have worked so hard to preserve.
Most importantly, studies show that school children have more fun when they have recess on a playground next to a nice clean parking lot than when they play beside a tall building.
Organizations such as the Congress for New Urbanism and the American Planning Association would have us believe that cities prosper most when they are dense and not like suburbs; that higher residential densities shift traffic from cars to public transportation thereby reducing congestion; and that "transit-oriented development" stimulates local business, makes neighborhoods safer, and gives cities a vibrant, "urban" feeling.
The Committee finds this ridiculous and objects to all of it. Please act now to save our parking lot heritage.
In early 2008 concerns and confusion by student renters continued.
Based on Maroon January 11 article by Rhema Hokama
At the start of the new year, many MAC tenants received letters returning security deposits, which MAC says it will no longer require and keep. Instead, renters will pay a non refundable but much smaller Move in fee. Many continue to say that convulsion continues and has to be constantly straightened out and that maintenance remains behind.
By Claire Wilcox
When fourth-year Zach Herz started the Facebook group "Why Yes, I Too Have Threatened MAC with Legal Action," it was just intended as an inside joke between some friends. But the group's membership has quickly ballooned to more than 50 students since its inception, with frustrated tenants posting a litany of complaints, including missing mailbox keys, lost rent checks, filthy apartments, unfounded eviction notices, and unreturned phone calls.
The group stemmed from Herz's own experience with MAC Property Management, which became Hyde Park's largest realtor after buying housing management firm K & G last April. "They lost our security deposit three times. They called by roommate and asked what the check looked like," Herz said. "Then they threatened to show our apartment to other people while we were living there."
He, in turn, then threatened legal action, claiming that MAC would be breaking the housing code by showing their occupied apartment to prospective parties. Both leasing agents and Chicago-based MAC executives declined to comment for this article, citing company policy.
Though not universal, these gripes are commonplace among MAC tenants, and Herz's Facebook group is one indicator that MAC may not be a significant improvement of K & G's notoriously substandard practices. "I've heard from my roommates that while K & G would always find the cheapest way to do repairs, they at least did them promptly," said third-year Hannah Jacoby, another student tenant, in an e-mail interview. "MAC is absolutely non-responsive when we file work orders with them. Usually things don't get done until we threaten some sort of legal action or refuse to pay rent."
Still, tenants who have experienced problems are not all quick to blame MAC. Third-year Ilana Tabby, a former K & G tenant, believes that MAC's difficulties are due to a bad inheritance. "I think that MAC didn't see see all the apartments before buying them from K & G," she said, citing missing kitchen drawers and broken screens in her apartment. "But they've been really responsive. I think a lot of it doesn't have to do with the realtor. If there's an issue we can contact them about it."
The poor physical conditions of the newly acquired buildings present a formidable challenge, which MAC is attempting to address through large repairs to buildings across Hyde Park. Still, MAC's problems seem to stem significantly from internal disorganization, said residents whose documents were lost.
"MAC" is well intentioned," said Herz. "If you're able to get a hold of them, they really do want to help, but they're not really professional. I had to start making my own copies, and they don't keep track of papers."
In addition to the merger with K & G, MAC has changed primary apartment management offices numerous times in the past year. "Too often they're pining things on the tenants," said Emilie Shumway, a second-year in the College and a first-time apartment tenant. "I feel like they're trying to take advantage of students who they think don't know anything about their rights. We didn't know we could ask for things like blinds until our maintenance guy told us."
Jacoby echoed the frustration and believes that MAC's singular hold over Hyde Park real estate was to blame. "It really has reinforce the importance of tenant solidarity in my mind," said Jacoby. "If all MAC residents were to have a rent strike until they shaped up, things would likely change. They have no competition in Hyde Park, so there is no motivation for them to improve the quality of their work. I think a coalition of MAC tenants would be hugely helpful in fixing these problems."
MAC tells Maroon its rent, other plans in April 2008 as forum planned with HPKCC for May 6
MAC Property to phase in rent hikes. Some rents to increase 15 percent
Chicago Maroon, April 18, 2008. By Claire McNear
A year after acquiring the properties previously owned by K&G Management, Hyde Park's largest realtor, MAC Property Management, has begun a phased increase of unit rental fees. The increases, which are as high as 15 percent for some properties, affect a number of units across Hyde Park, although the majority will not face any changes--yet.
"We are not raising every MAC unit this year," said Peter Cassel, the MAC director of community development. He noted, however, that "over the course of the next few years, the rent of all units will be increased," except for select units where the rent is tied to residents' incomes based on agreements made with local affordable-housing groups and local government.
These changes stem from a combination of factors, Cassel said, including higher demand for property, improvements made to Hyde Park buildings, and unusually low rent.
"We saw many of the owners of the apartments [previously controlled by K&G] paying more than 25 percent under market price. In those cases when there was a significant difference between the market price and what they were paying, we did not raise anyone's rent more than 15 percent."
"For K&G units, their year started in April, or their year started in August," Cassel said. "So when we purchased those units, all of them had one of those expiration dates. This is really our first opportunity to look at the rent and, when appropriate, make changes."
MAC's changes encompass more than rent increases. MAC, which presently manages more than 300 apartments in approximately 70 buildings throughout Hyde Park, is continuing to acquire new properties, including a building on South University Avenue that sits opposite Henry Crown Field House.
Additionally, unlike other former Hyde Park property owners, MAC has its own on-call maintenance department, through which resident can file work orders. While recognizing that maintenance service has been subpar in the past, Cassel said that, "[Now] almost all our work orders are satisfied within a day. That level of service has some cost to it."
"I'd be able to meet [the raised rent] because you have to, really," said Cheryl Luce, a third-year student and MAC tenant. "There's really no choice."
"It's just further gentrification," said Hilary Dick, a postdoctoral fellow at the University who also rents from MAC. "It's going to force poor people out of the neighborhood even more. There should not be less affordable housing."
MAC contends that the overall costs of units are, for the most part, not actually on the rise. "For example, we put in more efficient windows which helped control heating costs. While the rent may be going up, the total cost of the apartment is not," he added.
Some residents, however, dispute the motivations behind these repair, suspecting that they're done to justify raising rents. "That's the thing I hate worst about MAC...they mask themselves as honest, legitimate business, and then they do things like this," Luce said.
"We recognize that rent increases are difficult for everyone," Cassel said. "It's much the same as we see gas prices gone up, food prices going up. We see local taxes going up. All of those things impact us. we would like to be in a world where there weren't rising costs, but that is not the case," he said.
In the downtown Chicago apartment market, average rental costs have risen more than 10 percent in the last year, following a 13-percent increase in 2006 and prompting Crain's Chicago Business to label this "a good time to be a landlord." With no new units built in Hyde Park in the last decade except for the University's graduate-student housing, demand for units near campus has remained steadily forceful.
Cassel encouraged resident to attend the upcoming public forum at the Hyde Park Neighborhood Club, at which MAC president Eli Ungar will respond to questions and concerns. More information on the May 6 forum can be found at hydepark.org.
HPKCC held a follow up with Ungar Ungar May 6 at the Neighborhood Club. After a power point (described in article below9, Ungar answered questions. He said the backlog of work orders was mostly worked down to jobs that are complicated or that involve interpretation and re inspection with the city. The buildings were starting to be refilled. Rehab work has started, priority buildings identified, and tuck pointing work was about to start-- for examples at the Windermere and the structural problems requiring scaffolding in the 1600 block of E. 55th St. He said he would start a pilot to see it basements of a certain type in the smaller buildings could be converted from storage/mechanical space to basement apartments as good as those above and allowing an affordable unit in the building. (This could result in a total of 29 additional affordable units; city parking requirements would have to be worked out.) He said it is unlikely there would be much more purchase, although he would like to acquire some run-down, rat-infested buildings by his Village Center Pancake House, hurting his values. He virtually committed to making the Del Prado a building that would be at least highly desirable to seniors.
He certainly acknowledged that rents rose and affordability is hurt when the housing stock is renewed or upgraded, but has been making agreements and arrangements to set aside sets of units as affordable in perpetuity. He wished L3 developers well in building a new rental high rise but indicated he would not seek to go that route-- or the turn around or convert route either. Ungar was told of instances where his staff is still unknowledgeable or unhelpful and was severely criticized for his new policy of replacing security deposits with non refundable move in fees, though he gave frank business reasons for doing so. In short, Eli commanded the show and deflected most skepticism, but the students, many of whom were notified, were not there.
On Solstice, he revealed that some units have been sold but construction cannot start until 50% are sold.
Gary Ossewaarde
MAC Attack. Chicago Weekly, May 15 2008. Robin Peterson. [Peter Cassel's name has been changed to correct spelling.]
Students were almost entirely absent from the mostly gray-haired crowd that came out to spend an "Evening with Eli" on Tuesday, May 6. Sponsored by the Hyde Park-Kenwood Community Conference, the event was a follow -up to an October conversation between local residents and Eli Ungar, founder and president of Antheus capital and associated MAC Properties, Hyde Park's second-largest landholder. About seventy people showed up at the Hyde Park Neighborhood Club to take part in this conversation, which began with a brief Power Point by MAC Director of Community Development Peter Cassel. In it, he outlined the company's recent success in revamping "uninhabitable" buildings, told its "exciting economic development story" of hiring 130 full-time Chicago employees, and explained recent rent hikes by linking them to the broader picture of condo conversions and the mortgage crisis. Cassel also described Solstice on the Park, a soon-to-be-built condo at 56th and cornell with modern architecture and a number of "environmentally progressive" features. With MAC's positive contributions fresh in audience members' minds, Ungar took the stage, opening the field to their questions.
Many people asked about the aesthetics, logistics, or economics of specific developments. There was some skepticism about the Solstice's design and some anxiety about ongoing renovations and rent increases at the Windermere, the Del Prado, and East Park Tower. Ungar's answers appeared candid and to the point: he described the difficulties of inheriting buildings in an advanced state of disrepair, where, he said, an "unwritten social contract" had governed the relations between tenants and previous landlords, with one demanding few services and the other charging low rents. Ungar openly admitted, "We blew it," in regards to maintenance issues last year, explaining that the company had "grossly underestimated how much there was to do" following its rapid acquisition of properties. One could hardly help but empathize with the owner of this company--who hails from New Jersey--as he told of his trials and errors in the "interesting, diverse, confusing, exciting community" of Hyde Park.
Articulate and charismatic, Ungar had little trouble in pacifying what could have been a justifiably disgruntled audience. But underneath the polite questions and answers lay the uncomfortable fact of MAC's vast presence in the neighborhood's rental market, which is only going to more costly as apartments are upgraded or converted to condos. Ungar acknowledged, "Gentrification is a double-edged sword. Some people can only afford to live in substandard apartments, and our activity is making apartments more expensive." Pointing out that the company maintained 129 units of affordable housing in Hyde Park, he also stressed that a system involving "the profit motive "will ultimately be most effective in getting developer "to do something good for others and themselves."
Expect that motive to bring less positive changes to the neighborhood as well. Though Ungar said he doubts that MAC will continue to acquire large properties in Hyde Park, this is unlikely to reassure those who already feel they "don't have options besides MAC," as one woman said to her friend. "Now that you're centralized, people don't know what going on," she asserted. "They're afraid to ask questions --they don't feel like management is sensitive to them." Meetings like this one might help assuage those fears, but for many, they do little to change the realities."
MAC plans affordable units in Hyde Park. Herald, May 14, 2008. By Sam Cholke. Ungar's name is corrected.At a meeting with the community Tuesday night at the Hyde Park Neighborhood Club, 5480 S. Kenwood Ave., MAC president Eli Ungar hinted at plans to add up to 29 additional affordable rental units and senior housing in some of his about 2,800 rental units in Hyde Park.
Ungar said the company is looking at senior housing very closely. The location should be close to transportation, retail and a par. "If I haven't described the Del Prado, I don't know what I did," Ungar said.
Wednesday, Peter Cassel, director of community development for MAC, clarified that no final decision had been made about senior housing, but the Del Prado at the corner of South Hyde Park Boulevard and South Hyde Park Boulevard and 53rd Street was one of several properties that has desirable features.
Ungar said he is exploring ways to increase the number of affordable units in the New Jersey-based company's holdings. One option is to create additional units in the basement of some buildings as large boilers were replaced with in-unit heating. The new basement units would allow an equal number of units in the building to be set as "affordable in perpetuity," Ungar said. Cassel said Wednesday they were still looking for a pilot building among the 43 eligible. Ungar said if the conversion were done in all 43 buildings, it would generate an additional 29 affordable units in Hyde Park.
Ungar also said MAC was catching up on a huge backlog of work orders inherited when they purchased properties last year. The company asked residents to submit requests for repairs when it took over, he said. The company "grossly underestimated" the amount of maintenance work the buildings needed, Ungar said. Ungar said they expected about 2,000 work orders from the 826 apartments-- but got 6,000. "It wasn't a bump--we blew it, "Ungar said.
The orders have been whittled down to 500, and 40 to 50 are processed a day, Cassel said.
Ungar took heat from the audience over the decision to shift from security deposits to nonrefundable move-in fees. Hallie Trauger, one of the few University of Chicago students in attendance, said the shift did not represent a small fee to often cash-straped and transient student renters.
Ungar said he made the decision because the paperwork associated with paying residents the small amount of interest made on their security deposits was too expensive and bureaucratic. the move to fees is a trend in the rental market, he said. "At the end of the day, rent will not be set by us, they will be set by the market," Ungar said. Rising utility costs and taxes are partly determining the rise in rent, he said. More importantly, previous owners of the buildings ignoring expenses and ignoring collecting rents were keeping rents artificially low, Ungar said The dramatic shift in the housing market since 2001 has made it far more difficult to make money on rental properties, he said.
Ungar said, except for an undisclosed property in negotiation, he was not planning any additional major property acquisitions in Hyde Par. Several small properties affecting the value of his holdings may be acquired -- notably, three greystone buildings next to the Antheus-owned Village Shopping Center, on the south west corner of Hyde Park Boulevard and Lake Park Avenue.
Work will begin in earnest on several building facades in the coming weeks, Ungar said. Aa matching brick has been found for repairs on the Windermere facade... and work will be completed by next year, Ungar said.
Tenants criticize MAC at U of C forum June 4. Company
says it is making major improvements
[Ed. note: the MAC rep argued on the one hand that rents were artificially low and simultaneously that alternative choices to MAC are ample... Neither the rep nor anyone else we have heard from so far has given us even a close estimate as to the number of rental units 47th to 59th, Cottage to the Lake.]
Herald, June 11, 2008. By Kate Hawley
Representatives from MAC Property Management took the brunt of some angry criticism from tenants at a public forum held at the University of Chicago. David Gefsky, who is in management a the company, fielded questions from students and renters, saying he hoped to conduct "an open exchange with our customers."
MAC, he management arm of Antheus Capital, handles about 3,000 apartments in more than 70 Hyde Park buildings - most of which Antheus bought in the last few years. During that time, representatives of both Antheus and MAC have met with the community on several occasions. Roughly 50 people, including about a dozen MAC employees, attended the forum last Wednesday. It was held at 5706 S. University Ave. and organized by the Southside Solidarity Network, a student group.
Tenants angry about poor maintenance dominated the early part of the meeting. Anjanete Chan Tack, a university student who rents an apartment from MAC near 53rd Street and Lake Park Avenue, detailed a story about a roof leak that took eight months to fix. Even after water poured through the light fixture in their kitchen ceiling, MAC took months to solve the problem, she said.
Hannah Birnbaum, another university student who rents from MAC, said the company has a dismal record of passing the buck to outside contractors when repairs aren't done. she said she had so much trouble getting MAC to respond to her complaints that she decided to exercise her right under the city's Residential Tenants Ordinance, and wrote letters demanding MAC fix the problem in 14 days or she would deduct the cost of repairs from her rent. "You know what? I works," she said to applause.
Others said MC employees had been rude or unresponsive to their requests. Gefsky offered apologies and made the argument, as Eli Ungar, head of Antheus, has in recent forums, that buying so many building sat once posed major management challenges. He said that in the last year the company has overhauled its organization, hired new property managers and is beginning to see results. For example, last year the company received 500 work orders a day, and just 75 are pending now, he said.
Some tenants said they'd seen no improvements, but Matt Kennedy, student body president at the university, said his interactions with MAC over the last couple of months have gotten better. He suggested that MAC could improve even more by streamlining its online communications, which Gefsky pledge to consider.
Other tenants were upset that MAC plans to raise rents -- Chan Tack was especially angry about her 15 percent increase, since she said the company has done nothing to improve her rundown apartment.
Rents are going up in part because the market will bear the increases, Gefsky said, adding, "The market was artificially low." Also, MAC is planning "extensive capital improvements" that require rent increases, Gefsky said. Costs have gone up, too, he said: oil, gas, insurance and property taxes. He also suggested that rent increases help pay his employees a "living wage" and noted that students have protested on behalf of living wages for teaching assistants.
The bottom line, he said, is t hat anyone unsatisfied with MAC Properties should feel free to rent from another landlord. "You have the greatest power in the world - to go live somewhere else,"he said. Choices are ample, he argued: MAC Properties manages 3,000 apartments, and Hyde Park has 14,500 units to chose from. Gefsky later explained in a phone interview with the Herald that this 14,500 figure is an estimate culled from a city Web site, and refers to the total number of homes in Hyde Park, including owner-occupied properties.
He said the tenants' complaints were good to hears straight form the source and would help MAC improve in coming months. He told the tenant, as the meeting wore on, "It does us no good to screw this thing up."
Jamie Nesbitt tells Herald will take up MAC's offer to go elsewhere.
Unfortunately, I missed the meeting with MAC Apartments' David Gefsky last week. But as I'm tired of empty apologies and broken promises, I suppose that was a good thing.
On Thursday, June 5, MAC Apartments sent a notice to Algonquin Apartment tenants currently leasing units in the unrenovated buildings, informing them of the new evacuation date (after months of giving us the wrong information) and offering us the option to prelease one of the newer units. After discussing it with my fiance, we decided to set an appointment right away, as we didn't feel like going through the time-consuming of finding another place to live while planning and paying for our September wedding.
But, try as we might, we could never seem to get in contact with the "transfer agent" who was supposed to help us with the process. My fiance even stopped by the office in hopes of running into the transfer agent. No luck. He was told she would be in touch. He was also told that the two-bedroom apartment we were looking for was $1,250. This was, again, on Thursday. So, you can imagine our surprise when, upon finally getting a human being on the phone the following Tuesday afternoon, we were told that as of Monday the apartment we had hoped to ease was now $1,350. And that the new number would apply, regardless of our current status as Algonquin residents. So much for us being "valued tenants." And the student discount is no more. Ah, yes. Another slap in the face. still, we were told by one of the other leasing agents at the main office that we could appeal to the community Manager to allow us to move into the apartment at the price we were told.
Of course, when I contacted the manager, [____], she told me her hands were tied, and attempted to steer me to their other, more inconveniently located properties. I also appealed to Regional Manager [_____] and received no response. Of course, I've come to expect this type of customer service from MAC. That said, I will gladly take Mr. Gefsy's advice and "live somewhere else" when my lease ends their summer (though, as the company owns nearly 1/3 of Hyde Park, this may be a problem). Clearly, MAC's greed takes precedence over community relations, and after being shadily price out of our apartment only a week after receiving a notice, I'm pretty much done. But I wil ad my voice to the growing chorus of former (shafted) Mac tenants and discourage anyone I know from doing business with them.
Mr. Ungar agreed to repeat the forum in about six months after that of October 16, 2007, and did.
Ossewaarde, Withrow, Maroon, Herald
Eli Ungar Discusses
Future Plans, Impact of MAC Purchases
As in the December 2007 Conference Reporter
The Conference in Action:
By Gary Ossewaarde
On October 16 Eli Ungar, founder and owner of Antheus Capital and MAC Apartments/Property Management, met over 100 residents and tenants at the Neighborhood Club. The open discussion was part of a continuing series of forums held and planned by HPKCC and its committees on matters of public concern and the future of the neighborhood.
Arranged at the suggestion of Conference member Mary Rose Shaughnessy and Mr. Ungar, the meeting was called because of widespread letters and expressions of concern about Ungar’s acquisition of a large percentage of rental properties in Hyde Park since 2002, with intent to “improve“ and hold them long term as rental, and also about Antheus’ planned or envisioned new developments at 56th/Cornell and 51st/Lake Park.
Catching public attention particularly was Ungar’s purchase of 43 properties from K&G Management this year (and later reports of missteps in absorbing and managing these properties) and resulting concern that rents would go up, threatening affordability and economic diversity in Hyde Park. Both MAC renters and other residents attended and spoke up on both specific and general issues.
Mary Rose Shaughnessy warned that because the company owns so much locally, expanded so rapidly and is beholden to nonresident investors it has little incentive to listen to tenants and, should economic troubles come, many residents could be priced out and many buildings become troubled.
Mr. Ungar replied that his success is tied to the neighborhood’s, that he is here for the long run (later citing their gifts to Kenwood Academy and Bret Harte), has a wide range and size of structures, and his strategy caters to serving a strong demand no one else is filling—rental demand, for many income levels. Jack Spicer added that it may be advantageous to be able bring problems and demands to a few large property holders, using tenant councils to deal with the owners.
Mr. Ungar readily apologized for managerial, scale, service, and construction mistakes. He promised his companies will do better, has been hiring, and results will show within weeks. Backlogged orders are mostly done; the Windermere and Algonquin work is getting on track and will be far from minimal. Ungar said he intends to adhere to high standards all renters have a right to expect in their homes and from their manager:
· units clean, well-lit, with heating and conditioning working,
· requests get response within a day,
· work done courteously and thoroughly,
· tenants get what is promised.
Ungar said the newly acquired
buildings range from those that turned out to be uninhabitable and had to be
emptied and put on a schedule for rehab, those that allow a choice between substantial
upgrading with higher rents or repair for more affordable rents, and buildings
that need minimum fixing up. A large set represented a deteriorating set of
housing stock—here was an opportunity help a neighborhood already characterized
by stability, even though any improvement posed risks to affordability and diversity.
He noted that condo conversion would undermine stability and affordability faster.
The rental units in Hyde Park-Kenwood went down from 22,000 in 2002 to 17,000
in 2007. No one has tried or been able to put up a new rental building in the
area since 1989.
He said that to
address these concerns in some buildings he is building out new basement apartments
and substituting individual heating units in each apartment for central. This
spreads general costs so the units can be kept more affordable or enables keeping
a unit or so at a lower rent/ (Tenants in these buildings would pay utilities
according to usage.) The overall result is more affordable units per building
than the city’s 10 percent standard. He also said he will consider being
more conservative, at least with some buildings, in introducing the kind of
“improvements” that only cater to and can be paid for with considerably
higher rents. He (and others) cautioned against simply not charging market rents,
suggesting seeking subsidy programs or a community fund. He also criticized
a burdensome and “capriciously” applied property tax assessment
that also penalizes multi-units, assessed at 22% vs. homes at 16%. He agreed
with an upset neighbor to better communication with neighbors when renovating
buildings.
While rents in most MAC buildings have not been significantly increased, he
agreed that the Algonquin buildings in the northeast Hyde Park triangle are
an exception. (One renter said she now spends 50% of her income on rent there).
The buildings had been neglected, he alleged, and were bought after a failed
condo conversion attempt. These high rents—and people are renting there—is
the only way to afford the difficult and costly building-by-building renovation
needed. 93% of the small units will meet the HUD standard for affordability,
but few of the larger units will, his breakdown showed.
Mr. Ungar suggested the neighborhood work together to find solutions to the
strongly expressed concern that the middle class, professional, and retired
backbone of Hyde Park may be forced out. Mr. Rumsey announced that a new coalition
dedicated to solutions to these and other affordability concerns would hold
its inaugural open meeting December 5, 7 pm at the Neighborhood Club.
There was only brief discussion
of Mr. Ungar’s new projects, such as possible increase in density or poorly
directed traffic and drives at Windermere West (56th/Cornell). Building for
rental would require sky-high rents and either wouldn’t lease or push
all rents up. Retail would be inappropriate at that location, he said. Parking
at 1.7 spaces per unit is higher than for most developments and may allow spaces
for neighbors. The city approves the roadway and entry configurations. The proposal
goes before the planning department in November. A public meeting will be held.
Phase I of Village Center (Lake Park and East Hyde Park), at the present main
building and lot, is in planning and will be brought to the community “soon.”
Asked how the neighborhood and its resources could be helped to thrive and hence
make his holdings successful, he suggested improved retail offerings.
In closing remarks, Shaughnessy said she is still concerned about consequences
if market experience doesn’t bear our Ungar’s hopes. Ungar insisted
he is conservatively financed and has paid and will be able to pay the bills
and is committed to communication and dialogue with the community and tenants.
His goal is be here in 20 years with the same buildings attracting full leasing
and growing in value.
HPKCC seeks to continue dialogue on MAC progress and on strategies for economic
diversity, possibly through a reconvening of the forum in a few months.
Top
Report on the October 16 2007 forum, by James Withrow
This report is in Mr. Withrow's blog, Hyde Park Urbanist. Here is the url: http://alwaysintransit.typepad.com/hyde_park_urbanist/2007/10/both-a-
develope.html. (To go just to the blogspot, halt at urbanist/.) And there are a few more photos here: http://alwaysintransit.typepad.com/photos/ungar/
He's Both Developer & "Charming Young Man"
Eli Ungar, spokesman for the sibling companies Antheus Capital & Mac Properties, answered questions at the Neighborhood Club tonight. The forum was presented by the Hyde Park-Kenwood Community Conference and moderated by its president George Rumsey. About 75 folks showed up. (That's Eli on the left and George on the right. The pics are from a little before the event started.)
Eli's companies have purchased a huge number of apartments in Hyde Park and Kenwood, but, unlike others developers, Mac doesn't do condo conversions. They do plan to construct condos next to Bret Harte School on the Windermere parking lot, a project Eli said just couldn't be financed as apartments. The rapid growth of the Mac portfolio has the potential for problems, but only the crankiest Hyde Parkers accuse him of anything worse than biting off more than he can chew.
The acquisition by Mac of 48 K&G properties this summer was indeed too much to handle (Eli admitted they made plenty of mistakes) and several residents from Mac units complained about poor communication, slowness in handling work orders and administrative problems. I'm guessing it's telling that the complaints were typically Mac tenants who once were happy with their service but have felt let down lately. No one identified themselves as former K&G tenants who were unhappy with their new landlord Mac. Eli's explanation that the problems were mostly growing pains seemed believable to me.
Only a couple questions involved the soon to be constructed condo building. One woman complained that the new alley would be right across from her house and we heard the usual gripe about parking from a woman who I assume was concerned about the future availability of her city-subsidized street parking.
Some interesting facts came out. Eli said there were about 22,000 apartment units in HP-K in 2002 and now there are about 17,000 (although he maintained that it was hard for him to find accurate numbers on this and depends on how you define the area.) He blamed the loss of units on condo conversions by other developers and registered his concern that this will continue to have a negative impact on affordability. He also complained that Cook County still assesses apartments at about a 30% higher rate than owner-occupied units-- although some progress has been made. He reiterated how unfair this is to lower income people. And higher assessments from converted condos are therefore somewhat mitigated by that higher tax assessment rate for apartments.
A woman asked what charitable contributions Mac has made to the community and Eli answered that they wrote a check to Kenwood Academy for $80K for replacement of seating in the gym (IIRC). No one asked if he would be asking to use Kenwood's parking lot for his Windermere tenants during the upcoming construction and Eli did not volunteer that information.
He said that several of the recently acquired buildings had basement boilers that could be replaced by single unit heating systems and, if Mac did that, then he thinks some of those basements could be divided and rented out as apartments. I'm very much in favor of that because that would eke out a little more density and probably means a few more affordable units (for when people like me are old & gray but still ambulatory). His biggest worry about the new units would be-- guess what!-- the city's parking regulations for new abodes. One rather nasty fellow then related a story from probably 30 years ago where a single unit heater blew up and killed a coworker of his (admittedly a tragic story) whereas the old boilers were usually surrounded by 2-foot thick walls and therefore much safer. This isn't an area I have any expertise in, but I'd be willing to take my chances in a basement apartment with the new heaters if it means I can stay in HP.
Since construction costs are related to affordable housing, I've twice asked Eli questions designed to let him complain about unusual costs in Chicago, things like permits or regulations (thinking mostly of required parking), but neither time has he taken the bait. Tonight, he replied that we could lower the cost of construction if we could get China to stop using so much steel.
K&G's motivation for selling has been irresponsibly asserted elsewhere, but Eli implied that it was mostly a matter of an older man wanting to simplify his estate. And probably the oddest thing Eli stated was that many of his early Hyde Park building purchases were from Croatians who had decided they could make more by selling here and investing in booming Croatia.
Folks pretty much behaved themselves, so George's duties as moderator mostly consisted of making sure everyone got to ask one question before anyone asked a second question, which he did a fine job on. Of course, Eli's charm tends to soothe all but the crankiest Hyde Parkers. One woman said he was a "charming young man" and his mother could be proud of his manners.
Eli continues to be the
perfect model for developers wanting to make money in Hyde Park. He admits mistakes
(although he will get testy about untrue allegations). He assertively responds
to neighborhood requests, even promising tonight to stay as long as people had
questions. And Eli exudes sincerity and concern. What more can you ask for?
Top
MAC owner defends management. Chicago Maroon, October 19, 2007. By Sarah Hetherington
The Hyde Park-Kenwood Community Conference held an open forum at the Hyde Park Neighborhood Club Tuesday to allow local residents to converse with Eli Ungar, founder and president of Antheus Capital and its affiliate MAC Property Management, one of the principal real estate management companies in Hyde Park.
George Rumsey, president of the conference, introduced Ungar to an audience of mostly non-student community members and asked that individuals refrain from posing questions or complaints about individual issues in lieu of asking broader questions. Ungar, however, welcomed any and all nitty-gritty concerns, offering to stay for as many hours into the night as necessary and vowing to answer all questions in precise detail.
"If there are things wrong, we need to know about them, and they need to be fixed," he said. "Our investments are only going to make sense if Hyde Park thrives... We learned a lot from buying 43 buildings in one day," he said, referring to MAC's purchase of Hyde Park properties from K& G Management last spring. "We need to do it better."
Mary Rose Shaughnessy, who wrote a letter to the Hyde Park Herald in July posing the question of whether Ungar's purchase of the 43 apartment buildings constituted a monopoly on Hyde Park real estate, began the forum with a comment. "They own so much of Hyde Park. [Ungar] has a huge stake in our community, but he doesn't work for us," she said. "what if [MAC] raises rents? They could drive out old-time residents."
In response, one man said, "Remember, [Ungar] is stuck here as much as we are stuck with him. We have an advantage in that he has a profit-based interest in our community." Nonetheless, Shaughnessy's comment reflected two of the major concerns voiced during the forum: first, whether MAC's renovation and refurbishment of Hyde Park real estate would actually improve existing properties' and secondly, how MAC's renovation would impact rent increases and the ability of long-time residents to afford living in the neighborhood.
One woman spoke about rumored mismanagement of asbestos abatement to the Algonquin Apartments. Ungar responded that MAC had purchased the Algonquin from a building owner who had failed in trying to convert the building into a condo. Mac was left with a property in very poor condition with renovation constrained by inherited and highly restrictive electricity and plumbing permits, he said. Ungar openly admitted that certain contractors began renovation without regard to asbestos midway through construction. "I take full responsibility for the mistakes," he said. "It was expensive, embarrassing, and it was my fault." Ungar hired a contractor that specialized in asbestos abatement to fix the mistakes and subsequently allowed the city to run tests on the building to make sure it was up to code.
Another woman also said that the rent increase due to the Algonquin's renovation threatened her ability to remain there as a senior citizen. She now has to spend half her income on rent, she said.
It was a concern Ungar responded to repeatedly through the evening. "I don't want to pretend higher rents are not an issue," he said. Ungar said he was interested in preserving Hyde Park real estate, emphasizing that condominium conversion has drastically depleted rental stock. Ungar claimed that no new apartment construction has taken place in the neighborhood in almost 20 years, citing one statistic stating that 22,000 rental units available in the neighborhood in 2002 had decreased to 27,000 due to condo conversion.
In addition to discussing MAC Property's resistance to condo conversion as a future prospect in Hyde Park, Ungar said that "just not raising rents is not ultimately going to succeed," but suggested that discussion and cooperation between "an admittedly for-profit organization such as MAC and the community allows for the potential for a productive collaboration for both parties."
Ungar contrasted the pragmatic view of MAC Property's real estate investment with a more altruistic explanation of how his company has attempted to invest in the community's future. Ungar spoke of sponsoring scholarships at Kenwood Academy named after teachers at the school and described how he was motivated by a conversation with the Academy's principal about fundraising setbacks to donate $80,000 in order to replace seats in the school's auditorium.
"So far, we have been biased towards giving to education," Ungar said. "In order for a neighborhood to be great, its schools have to be great." Ungar concluded by stressing that MAC Property was interested in staying in Hyde Park for the long haul. "My goal is to be here 20 years from now, slightly thinner," he grinned.
Two Herald takes. October 31 2007. (Note: there is also a letter from Mary Rose Shaughnessy similar to that published above.)
Antheus holds forum to address questions. By Yvette Presberry
Following a rush of land acquisitions that made it the second-largest property owner in Hyde Park, Antheus Capital has sparked many question[s] about how Hyde Park will be affected by their presence in the neighborhood.
In an effort to address those questions, Antheus head Eli Ungar [corrected in this printing] , in cooperation with the Hyde Park-Kenwood Community Conference (HP-KCC), held an Oct. 16 forum at which residents peppered Ungar with concerns ranging from details about the everyday business of property management to the growing expense of renting in Hyde Park.
Late into the night, Ungar answered question after question during the uncharacteristically subdued event. In between frequent apologies, Ungar told the nearly 100-member audience his investment in the neighborhood is for the long haul. "We have no intention of selling," Ungar said.
Among the properties the company owns are Village Center, 1525 E. Hyde Park Blvd., a mixed-use center with a grocery store, restaurant, office space, and apartments; the Algonquin, 1606 E. Hyde Park Blvd.; Maple House, 1120-26 E. 47th St., an apartment building that also includes a Washington Mutual branch and several shops on the 53rd street site of the property. The company also plans to erect a high-rise designed by award-winning architect Jeanne Gang at 56th Street and cornel avenue. At a second recent community meeting Ungar also met with parents and representatives of Bret Harte Elementary School , 1556 E. 56th St., about construction of the high-rise, which will affect [sic] the school.
Several people at the HP-KCC forum discussed concerns of condominium conversions and rising rent rates in Hyde Park. "We will move out if we can't afford to live here," said Hyde Park resident Allison Hubbard.
Ungar repeatedly apologized for inconveniences tenants mentioned they had encountered when trying to reach MAC Properties, Antheus' management arm in Hyde Park, and said that buying so much property in Hyde Park at once was a learning experience. "We've learned a lot from it," he said.
Antheus updates Bret Harte officials about high-rise plans. Nykeya Woods
An Antheus Capital representative updated Bret Harte Elementary officials in early October about its plan to build a 26-story high-rise adjacent to the school. Construction on Windermere West near 56th Street and Cornell Avenue could begin next summer and officials at the school at 1556 E. 56th St. fear they may encounter snarls.
Updated plans show that the New Jersey-based company is creating a larger wrap-around playground and a one-way private driveway, which can be used as a drop-off and pick -up lane for the school. an alley, which juts behind the property and is located east of Bret Harte, is expected to move north. the parking lot will increase in size and is set to move to a grassy area next st the school. Before Antheus could pursue creating a 26-story building, the company had to acquire a small strip of land from the Board of Education.
Antheus head Eli Ungar said that he understood that the construction of the 142-unit condominium building would create some problems for Bret Harte. But he said that he specifically searched for a construction firm that has built next to schools. "Whenever you build things in an urban area, its' complicated," Ungar said. "Whenever you build near a school, it's 10 times as complicated."
Possible problems included traffic flow and congestion along 56th street, which is a concern the school's principal Shenethe Parks has raised.
Eli Ungar wins Rabbi Robert J. Marx Social Justice Award from the Jewish Council on Urban Affairs.
Mr. Ungar won the award for support of JCUA's Community Ventures Program, to give seed funding to non-profit groups to develop affordable housing or low-income families. Ungar was noted for offering resources and serving as a partner. Developer Michael Alter also won the award.
Antheus to acquire Del Prado, East Lake Towers
Hyde Park Herald, December 19, 2007. By Sam Cholke
Eli Ungar of Antheus Capital and MAC Apartments, confirmed Dec. 3 that they are under contact to purchase Del Prado Apartments, 5307 S. Hyde Park Blvd., and East Park Towers Apartments, 5242 S. Hyde Park Blvd.
"We are scheduled to acquire them at the end of January, and we are in the process of studying them to try to fully understand their current condition," Ungar said. Ungar said that from initial inspections it was likely that Del Prado would need to be emptied of occupants to perform repairs on the building.
"The Del Prado, I think, has some physical conditions that are very difficult if not impossible to address while the building remains fully occupied," Ungar said. From initial inspections of East Park Tower, much of the work - modernizing elevators and heating systems and renovating hallways and lobbies - could be done while residents continued to live in the building, Ungar said.
"The preliminary news is that the East Park Towers appears to be in significantly better shape than the Del Prado, and I think it is not certain, but highly likely, that the work we would want to do in East Park Tower could be done without interrupting occupancy of the building,"
Ungar said they are trying to keep renovation costs low so apartments can remain affordable once repairs are finished. "What we're trying to do is see what we can do at East Park Towers just short of a full renovation so that we wouldn't have to end up with rents that are significantly higher", Ungar said.
Both buildings are at about 70 percent of full occupancy currently , Ungar said. The hope is that some residents could be relocated to East Park Tower while renovations are completed on the Del Prado, he said. Ungar said one of the things they are trying to facilitate in the renovations is providing residents currently in the apartment towers the chance to stay in the community.
"We've been active in Hyde Park for a number of years now and things that were not on our mind when we first got started we've learned by being a part of the community," Ungar said. "Affordability is really first and foremost. There is a significant part of the community that has lived here for a long time, is on a fixed income, and would love to remain in the community and is growing ever more concerned about their ability to afford the community as it gets more expensive."
Antheus capital is mindful of the fact that one of the results of renovating buildings is that they become nicer and more expensive, Ungar said. "Financially, it would probably be better for us to empty both buildings and do a complete renovation. I think there is a market that would readily rent those apartments as soon as they're done," Ungar said. "Having said that, I don't think that's the best overall outcome for the community, and we're trying to be attentive to that and try to find a middle course that allows us to receive a fair return on our investment and also takes into serious consideration the impact it has on the community."
December 26 Herald: Antheus bought 1440 E. 52nd. By Yvette Presberry
On the heals of announcing the construction of a new high-rise in Hyde Park, New Jersey-based developer Antheus Capital purchased a mixed-use apartment building at 1440 E. 52nd st. The 53-8nit building has 48 apartments and five retail spaces, including a snack store and a lingerie store. Its location is also diagonal from businesses in Harper Court and one block from merchants on 53rd Street.
Antheus principal Eli Ungar said his company bought the building in October because it is in a key area of Hyde Park and is across the street from another antheus-owed building, The Blackwood, 5200 S. Blackstone ave., a rehabbed high-rise building that once served as a hotel in the 1930s to '50s. "It's an area we know well and certainly have a presence in," Ungar said, describing the block on which the Blackwood and his company's most recent acquisition sit.
Ungar said the previous owner, JMJ Enterprises LLC., renovated the building prior to Antheus' purchase of it, so his company does not plant make any changes to the site.
Antheus owns more than 85 properties in Hyde Park and is currently developing a 26-floor high-rise called Solstice in the Park on the corner of 56th Street and Cornell Avenue. Ungar said Antheus may purchase more property in Hyde Park at some point. "We continue to be very optimistic [about] the future," Ungar said.
Del Prado's residents' move nears
Hyde Park Herald, March 12, 2008. By Kate Hawley
Tenants at the Del Prado Apartments, 5307 S. Hyde Park Blvd., had mixed reactions to a briefing last week about when they will have to move out to make way for a gut renovation of the building. Tenants will be able to stay until their leases expire, representatives rom MAC Property Management explained at the meeting, held on Tuesday, March 4 at the building.
MAC is the management arm of Antheus Capital, the New Jersey-based company that bought the building in late January. The Del Prado is in need of major repairs that can't be accomplished if the building is occupied, MAC staff explained.
Tenants will have to find and apply for new apartments, but if they move into other buildings managed by MAC, they'll be able to waive the application and move-in fees, according to Wendy Neitzel, MAC's director of property management. Those fees will also be waived if the tenants want to come back to the Del Prado, she said. And tenants can end their leases early without penalty. MAC also plans to invite tenants and local building managers to a housing fair on Thursday, April 3.
Muel Benforde, a building resident, said he found the meeting helpful. "I was pretty much comfortable with what they talked about," he said. "They were very professional about it." He would be interested in moving to another building managed by MAC, he added.
Maribeth Quinn, who has lived in the Del Prado for 23 years, is among the tenants who receive subsidized rent through the Section 8 voucher program. Although she agreed that the building is in disrepair, she was upset about moving. "At first, I cried," she said. "This was my home."She hoped not to have to leave the neighborhood. "I want to stay here in Hyde Park," she said. Section 8 tenants must apply for new apartments that accept vouchers through the Chicago Housing Authority. Whether or not Section 8 tenants can return to the rehabbed Del Prado depends on what the rents will be, which hasn't yet been established, according to Eli Ungar, head of Antheus Capital.
Karen Bevil, a 19-year resident, lives in a market-0rate studio with a view of the lake. She was irked that she'll have to re-apply for anther apartment. "I'm already a tenant, and I'm a tenant of yours by default," she said. "Why should I go through anything but just transfer to another apartment?" Ungar said that since his company inherited these tenants, it has the right to ask them to apply for space in one of its other properties. Bevil also expressed doubt that the building was in need of repair. Ungar said it needs serious attention: the elevators, windows, plumbing, and heating and cooling systems need to be replaced.
Major demolition and rehab won't begin until the last residential lease ends in late fall. The rehab of the building will likely take a year, with the units ready to be leased in the spring of 2010. Ungar said it's too early to tell whether rents in the rehabbed building will be comparable to what they are now, especially since some reconfiguration of the units is likely. The building has a number of 250-square-fot studios that will likely be made into larger, more livable units, he said. "The building will be beautiful and rents will reflect that," Ungar said.
Currently, the Del Prado's roughly 200 apartments are about 65 percent occupied, according to Ungar. The building also has a handful of retail tenants, including a dentist's office and a dry cleaner. Those leases will be honored if the tenants so choose, he said.
A public meeting was held November 15 at which unanimity in favor of this development was expressed by the approximately 100 attendees. In presentations and answer to well thought out questions, the audience learned of how the award-winning architectural firm of Studio Gang has sculpted the sides of the building to alternatively minimize and maximize sun impact and load, avoid monotony, make a green LEEDS building, and to fit the floor plans that are grouped in three tiers corresponding to sizes and layouts of units. We also learned of accommodation to the needs of Bret Harte School, traffic circulation and parking loads, and other local needs including provision for affordability in the building to the north. The development was praised for filing a niche (new structure for condos) that will bring in new residents to help support retail.
Note that according to communication from Robert Greenspoon (and perused documents) on November 14th Board of Education, pursuant to a complaint filed by Mr. Greenspoon and other neighbors to the north re: procedures in sale of amount of property by Board of Education to a private developer without public hearing and other steps, rescinded its approval of improvements to Bret Harte School in conjunction with the project. Staff will review and recommend at a later Board meeting. Antheus says it does not need the section in dispute, slated for a teachers' parking lot, and is willing to let it go-- thus only the school teachers are hurt unless the Board decides to put parking on this sector.
The project in spring 2008 was showing the on-site model and selling units. About 40% will have to be sold before construction can start, no earlier than fall 2008. Writers continue to point out some perceived maintenance issues and feasibility in light of necessary prices. The arrangement with Coalition for Equitable Community Development to keep (assuming the project goes forward) all of the units in the building to the north affordable in perpetuity is complete.
The sales trailer has windows that can be programmed to show the views from the various suites and floors. Sellers hope the uniqueness of the design and its amenities will be the selling point. There have been sales and they remain hopeful they can break ground by the end of 2008. (Two more years of construction will follow.) Prices start at $480,000 for some 2-bedrooms (to $1.1m) and top out at $2.5 million for one or some 4-bedrooms. Assessments: $300 to $1,200 and include window washing that the sellers say is not a problem. Amenities include 9 foot ceilings, whit-oak hardwood floors, special cabinets and appliances. Common areas include a fitness center an a half-acre green roof with barbecue area and triangular swimming pool.
Note that the plan from lower toward upper shows the drop off like that that of the Windermere (and which will funnel cars from the high rise eastward during school rush hours), the 26 story tower over parking an lobby, health club, offices (bluish), then the c45' high north part of the garage with green garden and pool roof, and to north and west the new alley and school drop off new school parking lot not provided by Antheus due to suit to CPS?, greenspace and playground. Gray structure to the north is 528, which Antheus will make perpetually affordable.
Hyde Park Herald, November 14, 2007. By Yvette Presberry
Representatives for developer Antheus Capital and law firm Bell, Boyd and Lloyd will discuss plans with the public on the proposed Windermere West at 7 p.m. Thursday, Nov. 15 at Bret Harte SChool, 1556 E. 56th St.
Windermere West, also known as Solstice on the Park, is a 26-story, 145-unit condominium west of te historic Windermere House, 1642 E. 56th St. Construction of the high-rise is planned to begin next summer, with an opening scheduled for 2010.
The building, designed by award-winning architect Jeanne Gang of Gang Studios, will include a roof garden, a health club facility on the premises, retail space and parking for all of its residents.
The proposed building requires zoning changes to construct roadways for Bret Harte visitors and faculty, as well as residents living near 56th street and Cornell Avenue. Antheus proposes building a private driveway for the elementary school and an alley next to the school.
Some concerns that have been previously reported are the height of the Solstice high-rise and its proximity to an elementary school. ..
Background: A local group known informally as Back to the Drawing Board conducted much research and has had a full discussion with Alderman Hairston. The alderman, as well as the group, held discussions with Antheus Capital (the developer) about certain changes the group thinks will make the development more an asset and less a problem.
Bret Harte is said to have made an agreement with Antheus, including size etc. of the replacement playground Antheus is paying for, location etc. of the drop off/access drive, traffic for the new building, and amenities for the school including accessible entrance and air conditioning.
Antheus is known to have made agreement with Interfaith Open Communities and the residents of the small rental building to the north to lock in rents in perpetuity and maintain the building as affordable rental.
Hyde Park-Kenwood Community Conference has not take an official stand, but consents seems to be in favor, as are all the other relevant organizations in the community. HPKCC herd a presentation in favor at its November board meeting.
Antheus updates Bret Harte officials about high-rise plans. Nykeya Woods
An Antheus Capital representative updated Bret Harte Elementary officials in early October about its plan to build a 26-story high-rise adjacent to the school. Construction on Windermere West near 56th Street and Cornell Avenue could begin next summer and officials at the school at 1556 E. 56th St. fear they may encounter snarls.
Updated plans show that the New Jersey-based company is creating a larger wrap-around playground and a one-way private driveway, which can be used as a drop-off and pick -up lane for the school. an alley, which juts behind the property and is located east of Bret Harte, is expected to move north. the parking lot will increase in size and is set to move to a grassy area next st the school. Before Antheus could pursue creating a 26-story building, the company had to acquire a small strip of land from the Board of Education.
Antheus head Eli Ungar said that he understood that the construction of the 142-unit condominium building would create some problems for Bret Harte. But he said that he specifically searched for a construction firm that has built next to schools. "Whenever you build things in an urban area, its' complicated," Ungar said. "Whenever you build near a school, it's 10 times as complicated."
Possible problems included traffic flow and congestion along 56th street, which is a concern the school's principal Shenethe Parks has raised.
See Discussion with HPKCC board. As discussed in April 2007 Conference Reporter.
Antheus Properties
will build a condominium building designed by Jeanne Gang and StudioGang with
parking on the surface lot of the Windermere, 1604-24 E. 56th St. There was
a neighbors and community stakeholders meeting October 23 2006. The expected-to-have-preceded
earlier meeting with the Windermere residents and businesses will be scheduled
as soon as interim parking and other details are determined. Note that Antheus
now has 17% of Hyde Park's rental properties. Representative Eli Ungar said
that the economics is against building new rental buildings in Hyde Park.
Gang is one of the most respected and largest woman-owned green/LEEDS architectural
firms in the country.
See takes that are very different from that below on the meeting and project,
below.
Revealed was a 25-story, 268-feet, 136 unit building. The latter is not set and will depend on such things as due-diligence marketing "advice" from the financing firm, but is expected to be a mix of sizes but to keep the number of units per floor small (4 to 8). The developers insisted they will not go higher. The project will consist of replacement and new parking, a lobby and club area intended so serve as a context-friendly transition to Cornell, the tower, the alley moved northward, and the independent 5628 building that will not undergo significant change, will stay rental, and serve as a buffer for the existing condo buildings to the north. (The Cornell block is almost all condo low rise or single homes.)
The developer promised a careful interim parking plan that will provide spaces for every existing tenant, even if valet and shuttle service has to be brought in.
The developer will ask the city for permission to move the alley to the edge of the 5528 building as well as to include the latter building in the existing Windermere planned unit development. (The developer seemed to say that 5528 will remain a separate LLC from that owning the Windermere and, until units are sold and an association formed the new site.) They and the Alderman would also petition to make the remaining south part of Cornell also northbound one-way.
Drop-off buses and traffic for Bret Harte would go north on Cornell, west on the new alley, and south along the east edge of the Harte property, or north via alley to 55th. The developer is negotiating with Bret Harte re: its drop-off and parking for staff as well as to pay to redo the playground and landscaping. Entries to the building and to parking will be on Cornell. And the Cornell face will be designed as contextual to Cornell, including the tower part being setback.
The building has been set back from 56th to minimize shadows on both the Windermere House and the houses to the north. Landscaping will ameliorate and ground parking south of the building. The building, designed by Jeannie Gang and Gang Studios, will have many green and energy/heat efficient features and will be bird- and neighbor-friendly through such features as tilted and tailored glass and an offset, faceted, rugose face that will make it distinct from most modernist buildings.
Shadow studies were shown and explained, showing that shadows at one time of the year will encroach on the front yards of two houses, but go no further. Main impact of shadows will be on units in Windermere House with west exposure, and efforts were made to minimize the shadows.
Some said they want no height, or that the building should be "classical" like the Windermere, or that at least a lower section should have a facewall up to the 56th sidewalk (shown by a map of 56th to the Drive to not fit in with existing, which is a sawtooth profile). But most seemed pleased or accepting, provided the interim parking and logistics are good. Alderman Hairston also felt, when asked by this reporter, that the project is a "home run."
Schedule: nothing happens before fall of 2007.
Herald, October 11, 2006.
MAC Property Management LLC will seek public input at 7 p.m., Oct. 23 [2006], at the Windermere House, 1642 E. 56th St., on plans to build condominiums at the corner of 56th Street and Cornell Avenue adjacent to Bret Harte Elementary, 1556 E. 56th St., on the northwest corner of 56th Street and Cornell avenue. It is currently being used as a parking lot.
The New Jersey-based company took over operations at the Windermere Sept. 29 when another company, Windermere House, LLC, bought the 220-unit rental building from former owner Sheldon Baskin, of Metroplex, Inc. Windermere House, LLC, was created for the sole purpose of owning the property. MAC shares a New Jersey Address with Antheus Capital, LLC, which provides investment capital.
Hairston said MAC provided her with preliminary plans for a low-rise development. "The building will fit into the neighborhood," Hairston said. "It is not going to obstruct views." Drawings call for grade-level and some below-grade parking, the alderman said. And the developer plans to ask the city for permission to push back the alley running between the proposed site and another parking lot just north of it, thereby expanding the lot size.
Hairston said moving the alley north would improve safety conditions around Bret Harte by separating the children from traffic. "There have been problems with people speeding through the alley, she said. "If you can lessen the opportunity for children to come in contact with moving vehicles, it's a good thing."
Almost all of the land surrounding the Windermere as well as the parking lot is zoned R-5 and RM-5, which makes it unlikely that the developer will need the city to approve a zoning change to build condominiums. "Regardless of what the city requires, it's my policy to have a community process," Hairston said."It's important for people to have a say-so."
(Skosey grew up in Hyde Park.) Hyde Park Herald, November 16, 2006. By Erin Meyer
The density of a proposed mixed-use condominium development for East Hyde Park will benefit the neighborhood as a whole, according to city planner Peter Skosey.
Englewood, N/J.-based Antheus Capital plans to build a 25-story, 268-feet high mix-use condominium complex on the northwest corner of 56th Street and Cornell Avenue. The proposed development, according to Skosey, vice president of external relations a Metropolitan Planning Council, is an appropriate use of he land, which is zoned as a planned development."Rather than focusing on the positive benefits--the increase in housing options, more customers for retail and more transit--the focus is always on parking," Skosey said.
He added that the density associated with planned developments encourages pedestrian-friendly retail districts. In some cases, Skosey said, more density also means more affordable units. "In order for the economics to work you have to spread the cost over a larger number of units," he said.</
