The Chicago Housing Authority chose a new development team to transform 7 acres near the old Cabrini-Green public housing complex, several months after financial pressures forced the original developers to back out of the project.

The CHA approved plans for Cabrini New Vision to redevelop the vacant property at Clybourn Avenue and Larrabee Street. The company is a joint venture between Evergreen Real Estate Group and KLEO Enterprises.

The duo was selected last week, after the CHA reissued request for proposals in March. The proposal used an address of 1450 N. Larrabee St. for the site, an irregular wedge-shaped parcel once home to Near North High School and next to a park. The high school closed in 2001, and the CHA demolished the building in 2023. The last Cabrini high-rise was torn down in 2011.

Developers are proposing a new road to cut through its housing project, located at the vacant lot around 1450 N. Larrabee St.

Courtesy of Cabrini New Vision, Pappageorge Haymes Partners and SmithGroup

The housing authority had previously selected a team led by Texas-based firm Hunt Development Group. But Hunt withdrew from the deal in August 2024 after the team failed to secure financing, causing the CHA to go back to the drawing board. Developer Pennrose, also part of the former development team with Imagine Development Group, said it left the Chicago market after years of being passed over for tax credits at the Cabrini site.

KLEO founder Torrey Barrett was one of three principals at Imagine, which still wanted to play a role in the Cabrini-Green redevelopment. But Barrett said Imagine has since dissolved.

It’s not the first time KLEO and Evergreen have worked together. In April, they finished construction on the Auburn Gresham Apartments, transforming vacant city land on the South Side into affordable housing.

“We had a great working relationship together, so that’s why I partnered with them,” Barrett said.

Evergreen has built affordable housing in Chicago for more than a decade and has experience working with the CHA. But this will be the first time it has redeveloped a former public housing site, Evergreen Director of Development David Block said.

Block said the team wanted to propose something different than Hunt to avoid similar financial pitfalls. President Donald Trump’s ever-shifting tariff policies have muddled construction costs, and interest rates remain a point of contention — even after the Federal Reserve cut its key rate last week by a quarter-point.

It can also be pricey building affordable housing, which means developers must get creative with their financing. A combination of tax credits, tax increment financing, grants and other sources are often necessary to get affordable housing projects off the ground.

Evergreen and KLEO plan to build about 450 apartments across four buildings, with at least 180 units subsidized by the CHA. There also are plans to build a mix of condos and townhomes, totaling about 75 additional units.

The team wants to add as many townhomes as possible, but Block said it will likely be an even split with the number of townhomes and condos available for sale. Overall, there are more market-rate options at the site than the previous proposal.

“Chicago has held up better than many cities in the strength of its rental market, whereas in places like Austin, Texas … there’s been a lot of construction and, in some ways, overbuilding of high-end rental buildings,” Block said. “Rents are starting to come down, and it’s harder to get those units absorbed into the market. In Chicago, we haven’t had that same issue. I think there is still room for this market to grow. We are looking to use that dynamic to help move this project forward — hopefully, faster than than a typical development.”

A rendering of the park inside of the proposed development at Clybourn Avenue and Larrabee Street.

Courtesy of Cabrini New Vision, Pappageorge Haymes Partners and SmithGroup

Their proposal includes a triangular park in the center of the development, with apartment balconies overlooking it. Evergreen and KLEO also want to build a new road, which would run through the middle of the parcel and separate the rental and for-sale buildings.

The team anticipates developing the project in five phases. A five- to six-year timeline was proposed, but Block said they’re hoping to build it faster.

Construction could start in about 18 months, he said. But the development team will first focus on community engagement.

The Cabrini-Green Local Advisory Council, plaintiffs in a long-running lawsuit with the CHA over replacement housing for Cabrini-Green families, are legally a part of the project. Evergreen and KLEO also plan to meet with other groups like the Near North Working Group.

The Clybourn-Larrabee parcel is north of various sites the CHA is eyeing for long-term development, a strategy it calls Cabrini Now. It has floated development ideas for about 43 acres bound by North and Chicago avenues, Wells and Halsted streets.

Grocery stores, high-end retailers and expensive housing have taken hold in the area in recent years. The Cabrini Now master plan is not final but calls for 4,080 units of mixed-income housing, with some high-rises. It has proposed more green space, including an urban farm and a connection for Seward and Durso parks.

The CHA expects the Cabrini Now final report to be released by the end of September.