Thrive Exchange will reimagine, revitalize, and reinvest in South Shore and South Chicago.
Thrive Exchange, a $100 million mixed-use project led by DL3 Realty, aims to revitalize the Cheltenham neighborhood with luxury workforce housing, condominiums, and ground-floor retail. Key partners include Chicago Family Health Center, Revere Properties, and KOO Architecture. They aim to address critical community needs. These include access to healthcare, quality affordable housing, and financial stability.
Thrive Exchange also focuses on community development with a Federally Qualified Health Care facility and additional community-serving retail. It was selected as the winning bid for the INVEST South/West 79th & Exchange project and is a finalist for the Pritzker Traubert Foundation’s 2022 Chicago Prize Grant Competition.
Before I tell you more about Thrive Exchange, let me tell you about the other South Shore development proposal.
Array Innovation Center vs Thrive Exchange
Through the Invest South/West program, two developers fought for permission from the city and nearby residents to redevelop sites along 79th Street and Exchange Avenue. Array Innovation Exchange and Thrive Exchange are the two proposals, where it would develop a 1.7-acre property at 7901-33 S with transit-oriented homes and businesses.
The Array Innovation Center, proposed by Urban Array Impact Development, competed for the redevelopment of the 79th Street and Exchange Avenue site in South Shore, Chicago, as part of the city's Invest South/West initiative. This project focused on technology, entrepreneurship, and community wealth-building. Key features included a Museum of Black Technology and Engineering, a Startup Studio and Accelerator, digital media studios and a makerspace, a vertical farm with a rooftop restaurant, 40 residential units (20% affordable), and several storefronts.
In contrast, the Thrive Exchange project by DL3 Realty was selected for redevelopment. Thrive Exchange offered 43 affordable apartments and 30 condos, significantly more affordable housing than the Array Innovation Center's 40 units. This project addressed a broader need for affordable housing in the area. Thrive Exchange also included a partnership with the Chicago Family Health Center to provide a federally qualified health center (FQHC), ensuring accessible healthcare for the community, which was a crucial factor for the selection committee.
Thrive Exchange's focus on economic and retail development was another significant factor. The project featured 11,000 square feet of retail space and commercial uses aimed at stimulating local economic activity, presenting a more robust plan than the Array Innovation Center's retail offerings. Additionally, Thrive Exchange secured substantial funding, including $16 million in tax-exempt housing revenue bonds and $10.2 million in Tax Increment Financing (TIF), demonstrating strong financial backing and project feasibility.
While the Array Innovation Center had an innovative approach centered on technology and entrepreneurship, it was considered less aligned with the immediate needs and comprehensive vision for the South Shore community. The selection process prioritized a project that could provide substantial affordable housing, healthcare services, and economic revitalization simultaneously.
Now let me show you the different benefits of Thrive Exchange in the South Shore.
Benefits of Thrive Exchange
Thrive Exchange will revitalize the South Shore community, bringing residents back, creating jobs, and improving health outcomes. This project aims to remove blighting influences like vacant buildings and empty lots, enhancing South Shore as a top residential location in Chicago.
1. Affordable Housing
Thrive Exchange will provide 43 affordable apartments for individuals and families earning up to 60% of the Area Median Income (AMI). Additionally, there will be 24 affordable condos. This ensures housing remains accessible to low- and moderate-income families.
2. Economic Development
Economic development is a key component of Thrive Exchange. The project includes 11,000 square feet of retail space designed to accommodate local small businesses. By fostering entrepreneurship and providing commercial spaces, the project aims to stimulate local economic activity and support community entrepreneurs.
3. Healthcare Services
Healthcare services will be significantly enhanced with the inclusion of a new federally qualified health center (FQHC). This facility will offer comprehensive healthcare, including preventive and mental health services, ensuring residents have access to essential healthcare services within their community.
4. Community Amenities and Services
Community amenities and services will also be a focus of Thrive Exchange. The development will feature community spaces, such as a community room, on-site management office, laundry facilities, a workout room, and bike storage. Additionally, public plazas and green spaces will provide residents with outdoor areas for recreation and community gatherings, enhancing the neighborhood's livability.
5. Job Creation and Local Investment
Job creation and local investment are critical outcomes of the Thrive Exchange project. The construction and ongoing operation will generate over 300 construction jobs and create more than 150 permanent jobs in healthcare, retail, property management, and entrepreneurship. These opportunities will attract further investment and contribute to the local economy.
6. Housing Support
Thrive Exchange will also support housing through financial counseling and homeownership classes provided by NHS. NHS will have a dedicated space within the residential apartments to coordinate these activities. This aligns with NHS's mission to create affordable housing opportunities, improve lives, and strengthen neighborhoods.
The impact of NHS is notable, having served over 245,000 families since 1975. They have loaned more than $675 million to help people buy, fix, or keep their homes, educated nearly 47,000 potential new homeowners, and created over 6,400 new homeowners. Their foreclosure counseling has saved nearly 10,700 families from losing their homes. Thrive Exchange aims to build a long-lasting relationship with the South Shore community, following in NHS's footsteps to foster community growth and stability.
So now let’s proceed to the different offerings of the Thrive Exchange development.
What does Thrive Exchange offer to the South Shore?
Affordable Apartments
Thrive Exchange will deliver 43 affordable apartments for residents earning 60% of the Area Median Income (AMI). The units include 4 studios, 20 one-bedrooms, and 19 two-bedrooms, with rents at $950, $1075, and $1250 respectively. The east side of the ground floor will feature retail space and offices for Neighborhood Housing Services, while the west side will have the residential entrance, admin space, and bike storage.
The project embraces a high-amenity luxury workforce affordable housing concept, featuring a six-story mid-rise building at East 79th Street and South Exchange Avenue. Residents will benefit from a second-floor lounge, fitness room, and a small outdoor deck over the NHS offices. The building will also have a community room, on-site management office, laundry facilities, and meet Enterprise Green Communities environmental standards.
DL3 Realty, in partnership with a property manager experienced in market-rate apartments, ensures excellent management and maintenance. Leon Walker emphasizes the importance of excellent property management for the community's benefit. This partnership aims to provide high-quality living conditions and stability for workforce residents.
Thrive Exchange is designed to enhance the community with retail spaces, accessible amenities, and affordable housing. This development aims to promote stability and affordability, contributing to the overall revitalization of the South Shore neighborhood.
Condos
Revere Properties will develop 24 condos on vacant land along Exchange Avenue, opposite the former bank building. The units will feature two to four bedrooms, private parking, and rear yards, with a project budget of $11.8 million.
Retail
The ground floor will feature 11,000 square feet of retail space at the main street corner, opening to a plaza along the Metra tracks. This space includes a small office for Neighborhood Housing Services (NHS) and is designed to accommodate local small businesses, boosting local commerce.
Residents will enter the building from the west side along Exchange Avenue, which also includes a dedicated bike storage room. A retail plaza facing the Metra tracks and the intersection will be complemented by a second-floor tenant amenity deck overlooking it.
The project also includes live-work lofts for new entrepreneurs, integrating living and working environments to foster local business growth.
Restoration of Ringer Bank Building
The Chicago Family Health Center will open a new 20,000 square foot healthcare facility within the historic Ringer Building, serving over 15,000 patients annually. This federally qualified health center (FQHC) will provide comprehensive healthcare services, including preventive and mental health care, to enhance community health and access to essential services.
The facade of the Ringer Building will be restored with materials complementing its original design, including a warm brick mix and copper metal panels. Arched openings will reflect the building's historical architecture. Built in 1928, the Ringer Building is likely eligible for Chicago landmark designation, and efforts will be made to preserve its defining features.
The development will also include 3,000 square feet of office space for local businesses and an incubator/creative space to foster local entrepreneurship. This aims to provide a supportive environment for business development and community use.
Additionally, the restored Ringer Building will serve as a cultural and community hub, housing spaces for events, gatherings, and other community-focused activities. This will strengthen the neighborhood's social fabric and provide a venue for cultural expression and community building.
Updates in 2024
As of mid-2024, the Thrive Exchange project in Chicago's South Shore is advancing well through its development and construction phases. The project has received the necessary approvals from both the Chicago Plan Commission and the Chicago City Council.
With City Council approval, the site will be rezoned from its current C1-2, B3-2, and RT-4 designations to a unified C1-3 designation with an overall Planned Development designation. This allows the developers to move forward with closing on the financing package and securing permits for construction.
Thrive Exchange has secured a comprehensive funding package. This includes $10.2 million in Tax Increment Financing (TIF), a $2.5 million first mortgage, $2.6 million in multifamily loans from the Chicago Recovery Plan, a $170,000 energy grant from ComEd, $10.6 million in Low-Income Housing Tax Credits (LIHTC), and a $100,000 deferred developer fee. Additionally, the city-owned parcel at 7909 S. Exchange will be sold to the developer for $1.
The Thrive Exchange project, estimated at $47.3 million, is poised to significantly impact the South Shore neighborhood. With robust funding and necessary approvals in place, the development aims to bring substantial economic and community benefits to the area.
Conclusion
Thrive Exchange aims to create high-quality workforce housing, a Federally Qualified Health Care facility in a restored historic Ringer building, and more community-serving retail. Imagine the South Shore bursting with life as condos, apartments, and shops line the streets. It will no longer feel neglected and can already compete with other famous projects in Chicago. And Thrive Exchange will do away with blighting elements like abandoned buildings and vacant lots. That will improve life for South Shore residents in the Windy City.
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