A Far South Side affordable housing complex plagued by neglect and deteriorating conditions has been sold, and city officials say the new owner will launch much-needed renovations.
California-based Transcend Development Group bought the 180-unit property at 221 E. 121st St. in West Pullman in a $53 million deal, including about $23 million set aside to rehabilitate its aging infrastructure and upgrade the apartments, most of which have federal rent subsidies.
The previous owner purchased the property in 2017 for $16.5 million and was listed in county documents as the Sausage King of Chicago LLC, a jokey reference to the 1986 film ‘Ferris Bueller’s Day Off.’ WBEZ Chicago identified the true owners as California investors Alan Smolinisky and Brian Chien-Chih Chen. Smolinisky didn’t immediately respond to a request for comment.
“We’re ecstatic that they’re gone,” said Ald. Anthony Beale, 9th. “We’ve had a bad ownership group that was reluctant to invest in the property and bring it up to code. It’s been a problem for years, but it came to a head about two years ago.”
The owner racked up a series of building code violations since 2022, including ones for missing smoke detectors, and faulty heating and plumbing systems, Beale said.
Transcend Development Group said they can begin tackling deferred maintenance issues and rehabilitating the three five-story buildings, built in 1971, this spring. Every unit will receive new kitchens and bathrooms, and new heating, cooling and electrical systems. Other improvements will include roof replacements, new windows and doors, security cameras and upgraded boilers.
Low-Income Housing Tax Credits, tax-exempt bonds, and other investments from the city of Chicago, the U.S. Department of Housing and Urban Development and Huntington Bank will finance the rehabilitation project.
“Thanks to the dedication of our federal, city, and state partners — and, most importantly, the residents and community advocates of Indian Trails, who never stopped pushing for change — we will soon be delivering long-overdue, quality housing that builds better, healthier lives and a stronger, more vibrant West Pullman community,” said Nicholas Tufano, partner, Transcend Group, in a statement.
Beale tied the new investment to a decade-long effort to replace stretches of vacant land in Pullman with new businesses, restaurants, manufacturing operations and community centers. Nonprofit developer Chicago Neighborhood Initiatives led the effort, along with Hope Center Foundation, the philanthropic arm of Salem Baptist Church of Chicago, and Far South Community Development Corp., eventually bringing dozens of businesses to Pullman and adjoining areas. Nearly 8,000 jobs were created, according to one economic study.
“The 9th Ward has been going through a renaissance in the last 10 or 12 years and securing new owners for Indian Trails is a part of all the new stores and businesses we’ve brought in,” Beale said. “It’s another piece of the puzzle that has changed the quality of life for people in this community.”