S
teve Rappin, CEO of Evergreen Real Estate Group, watched the 2025 trade war unfold with caution. The new tariffs—especially the jump on steel from 25 % in March to 50 % in June—threatened to raise construction costs across Chicago. Yet Rappin reported that the impact was less severe than feared; the firm’s subcontractors and general contractors stayed alert, but the company’s conservative underwriting kept losses minimal. “We’re a little more conservative when we underwrite our projects,” he said, adding that the anticipated risks were largely navigable.
Rappin frames 2025 as “Evergreen 3.0,” the next phase of a decade‑long strategy to strengthen the business. Founded in 2001 as a property‑management firm, Evergreen has broadened into development and construction, delivering roughly twenty residential projects a year that are then managed by its own division. Diversification, he says, is the company’s hedge against economic swings: “If one area falters, other ventures can balance the portfolio.”
The company employs about 580 people in Illinois and 12 other states, plus Washington, D.C. Last year, Evergreen pushed into new markets, notably Colorado. Its Denver satellite office now handles most deals there, and the firm is eyeing rural sites and other western states—Oregon, Utah, Arizona—despite the state’s competitive environment.
Evergreen plans to close 20 deals this year, many of which stem from its market expansion. In Chicago, the firm faces tighter resources and funding constraints, especially for affordable housing that relies on tax credits, incremental financing, grants, and other public‑sector support. Nevertheless, Evergreen finished several projects last year, including the 89‑unit Encuentro Square in Logan Square and the two‑building Auburn Gresham Apartments.
A marquee project came when Evergreen, together with partner KLEO Enterprises, secured a 7‑acre site near the former Cabrini‑Green complex. The partnership, formed after the original developers withdrew, aims to build 530 units. Rappin highlighted the creative financing enabled by collaborations with the Chicago Housing Authority, the city, and the Illinois Housing Development Authority. “There’s a lot of work to do with the CHA, the city, to align the plan and financing,” he said, noting the scale of the project as a significant achievement.
While tariff and labor concerns did not materialize into major setbacks, Rappin keeps a close eye on interest rates. He credits Evergreen’s focus on naturally occurring affordable housing—units that remain affordable due to market conditions rather than subsidies—and conservative financial projections for weathering 2025. “Affordable housing is very reliant on public policy, and that policy can shift,” he said. “Diversifying outside of policy‑based housing is crucial for us.”
In sum, Evergreen’s strategy hinges on diversification, prudent underwriting, and strategic partnerships, allowing it to navigate tariff hikes, market volatility, and funding challenges while expanding its footprint beyond Chicago.
