On January 31, 2018 Hispanic Housing Development Corporation closed on the acquisition of Arrowhead Apartments in Palatine, IL. Arrowhead Apartments is a 200 unit two and three story apartment complex spread over 10.6 acres, with a clubhouse and a swimming pool. There are 103 one-bedroom, 76 two-bedroom and 21 three-bedroom apartments at the property. The most notable part of the apartment complex is the water feature—four interconnected and landscaped ponds, with ducks.
20% of the units at the complex are covered by a Section 8 contract, which is scheduled to expire in approximately two and one-half years, which we will preserve for the foreseeable future.
We plan to acquire the complex in a partnership with The Community Development Trust (CDT), who will be our equity partner. Cook County will also provide a low interest loan, in exchange for long-term preservation of the expiring Section 8 contract at the property. Initially, we will finance the project through our local bank, First American Bank.
We plan a renovation of the property, which will be financed through a HUD-insured loan that will also repay the initial bank financing. The renovation is scheduled to begin in the early fall. Tropic Construction will handle the renovation, which will include new roofs, improved landscaping and renovation of the units. All units will be renovated, with new kitchens and baths, as well as new flooring, lighting and closet doors.