Local Investor Joins with Hazel Crest and SDA to Save “Missing Middle” Housing
If you walked into this unit at the 2,100 block of 171st Street in Hazel Crest, Illinois a few months ago, you probably would have turned around. Seriously.
The roof leaked. Water sat in the basement. Mold covered the walls. Parts of the structure had started to fail. It was absurdly bad – and the photos tell the tale.
It makes sense considering the townhouse in Hazel Crest had sat vacant for nearly 18 years, after all. Obviously there was a reason.
Now it is fully renovated and sold.
That turnaround happened through a pilot partnership with the Southland Development Authority (SDA), the Village of Hazel Crest, and a longtime contractor and investor who took on one of the toughest projects of his career. The contractor represented Citadel Construction Group LLC. The project resulted in the recovery of “missing middle” housing – the kind of housing that has become harder to find in greater Chicago at a price point available to middle class families.
The SDA and the South Suburban Land Bank established a pilot program to rebuild a home - and to set in place a program for more “missing middle” housing to be saved and renovated. To deliver on this promise, the SDA, the Land Bank and the Village took a number of key steps: (a) coordinating the legal due diligence to acquire the property, (b) removing back taxes (of previous owners), and (c) finding a willing and experienced investor in Citadel Construction Group. With the legal foundations in place, the firm pivoted to the renovation project, finished the construction rehab, sold it, and now has it back on the tax rolls - a true win for all parties.
The Before. “The property was in an extremely disheveled state,” said a representative from the construction team. “There were holes in the roof, flooding in the basement, mold, and structural issues behind the walls that we did not know about until we opened it up.”
The contractor representing Citadel Construction Group has worked in construction for years. During the 2008 housing crisis, he served as a prime contractor for Fannie Mae and handled dozens of distressed properties. Even with that experience, he said this one stood out.
“On a scale of one to ten, with ten being the worst, I would put this at a 9.5,” he said with a straight face.
The work started from the top. His team repaired and resurfaced the roof to stop active leaks. That gave them a chance to dry out the property and begin demolition.
Once they opened the walls, they found, you guessed it, even more damage.
Support joists had rotted. Water had damaged flooring. Mold had spread through the basement. Plumbing and drainage systems had failed. You name it.
And if you did name it, whatever ‘it’ is, they rebuilt it.
The After. The renovation included new flooring, new trim, new doors, drywall repair, mold remediation, plumbing upgrades, a new sump pit, HVAC installation, electrical upgrades, roof repairs, landscaping, and deck restoration.
“We pretty much had to rebuild major parts of it,” he said.
That included taking the basement down to the foundation, repouring concrete, rebuilding walls, replacing mechanical systems, and redoing bathrooms.
It all had to be done. Because Citadel Construction Group believes in building something you would live in yourself.
Raising the Bar, Making a Market.
“We build a property with the kind of quality and finishes that I would want to live in,” the representative said. “We do not take shortcuts.”
That means better materials, cleaner finishes, and stronger long-term value. It all works together to create a legitimate opportunity for someone buying their first home.
“The target buyer is really a first-time homebuyer,” he said. “Someone trying to get started in homeownership.”
This unit is part of a larger 92-unit development in Hazel Crest. At one point, he said roughly 20 to 25 units in that development sat abandoned or boarded up.
That creates problems for everyone around it. Vacant properties lower surrounding values. They create maintenance issues. They slow growth. The SDA knows this project changes that.
Through that aforementioned partnership involving the Village, SDA, and the South Suburban Land Bank, this unit moved from vacancy back into the market. And it moved fast.
“The property sold within a matter of weeks,” he said.
That quickly added value back into the neighborhood. Tax revenue. Stability.
With the pilot project successfully completed, he plans to take on more abandoned units in the same development over the next few months. The Village with backing of the SDA intends to support investors like Citadel Construction Group that are willing to undertake more “missing middle” housing recoveries and put them back into productive use.
“Our goal is rescue and repeat,” the Citadel Construction Group representative said.
In Hazel Crest, the goal is to achieve fewer vacant units and more homeowners.
For the next buyer, it means something simpler - a fresh start.
About the Southland Development Authority
The Southland Development Authority, a not-for-profit economic development organization, is committed to driving equitable and sustainable economic growth in the South Suburbs of Chicago. Through innovative programs, strategic partnerships, and impactful direct investments, the SDA is building a vibrant, inclusive economy that drives wealth growth for individuals, businesses, and municipalities. Combined with the benefits of the South Suburban Land Bank and the Monarch Fund, the SDA serves as a model for regional development.
