Springbank has created a highly transparent and efficient platform, providing investors direct access to superior investment opportunities otherwise not made available to the broader market.
Springbank will seek to deploy the majority of its capital in institutional‐quality real estate with a focus on Transit Oriented Developments (“TOD”). Transit-oriented development, or TOD, is a type of community development that is anchored by simplified housing options and includes office, retail and/or other amenities integrated into a pedestrian-friendly neighborhood located within walking distance of a quality public transportation hub. The Company believes that TOD’s create better access to jobs, housing and opportunity for people of all ages and incomes. Successful TODs provide people from all walks of life with convenient, affordable and active lifestyles and creates places where our children can play and our parents can grow old comfortably. Over the past 50 years, multi‐family investment has outperformed all other asset classes on an absolute and risk-adjusted basis. The Company believes TOD will attract a disproportionate amount of institutional capital in the coming decade, delivering superior risk-adjusted returns to developers and their investors in the following manner
- Inflationary safe harbor;
- The surge of capital inflows from foreign investors;
- High current yield; and the potential for above market capital appreciation particularly in high demand, supply‐constrained locations that the Company intends to target.
In validation of the Company’s investment thesis, the City of Chicago recently passed sweeping legislation to encourage the advancement of TOD. Some noted highlights include:
- Greater Density – “The approved ordinance retains the provisions that increase the distance from a Chicago Transit Authority (CTA) or Metra station entrance eligible for TOD parking reductions,floor area ratio (FAR) and height increases and minimum lot area per dwelling unit (MLA)reductions. Properties within 1,320 feet (1/4 mile) of a CTA or Metra station entrance or within 2,640 feet (1/2 mile) on a pedestrian (retail) street are eligible. These distances were previously 600 and 1,200 feet, respectively.”
- Lower Carbon Footprint- “Parking reductions of up to 100 percent for residential uses are allowed in the approved ordinance. Under the previous TOD provisions, only non-residential uses were eligible a reduction of more than 50 percent. Projects seeking to utilize the FAR increase, height increase and MLA reduction available for TOD projects must (1) provide no more than one parking space per dwelling unit and (2) satisfy the new criteria for a special use.”
- Zoning Flexibility – Per the Chicago Plan Commission “will promote public transit and alternatives to car ownership through car sharing programs or bike-share programs; and the requested reduction will be offset by enhancements to the pedestrian environment not otherwise required, such as sidewalk widening, decorative pavement, trees, etc.”