association house | Building Solutions

Chicago, IL
Our assignment with Association House, the 99 year old Chicago social service agency, began late in their real estate venture process, but fortunately not too late to reverse an ill-fated course of action. A seemingly inexpensive building acquisition resulted in an all-in cost equivalent to new construction; but the true financial disaster came when neighborhood opposition caused the Alderman to change the zoning, but only after the agency had closed on the property, expended funds on architectural drawings, secured financing commitments, and maintained the property.

Building Solutions sold the original site and redeveloped a new site in the core of Association House’s service area – a recently closed, obsolete hospital. The new site is three times as large as the initial site selected and had an all-in renovated cost substantially less than the “cheaper” property. The space not required by the agency is leased to compatible non-profit agencies and provides Association House with substantial flexibility for its own future expansion. The tenants are found that they not only have compatible office mates, but their services are enhanced by co-location. Tax-exempt bond financing was successfully marketed at exceptionally attractive rates, resulting in a net occupancy expense that is lower than their previous lease commitments. They own the building, and they have room for expansion. The political process was integrated with the real estate decision-making decisions, the neighbors, and the non-profit tenants – a true “win-win” relocation.