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Swapping Rent for Ownership, Hangry’s and Its Partners Continue to Grow

On Fullerton Avenue, in the Belmont Cragin neighborhood of Chicago, storefront businesses dominate a commercial corridor that has long been home to immigrant enterprises—from the Eastern Europeans who put down roots a century ago to the Latinx residents that lead so many operations today. Victor Gallardo and Sergio Villegas, long-time co-workers and now business partners, are part of that rich tapestry, as is Hangry’s, their 28-seat restaurant serving burgers, wings, pasta and more to area families and neighborhood visitors.

On Fullerton Avenue, in the Belmont Cragin neighborhood of Chicago, storefront businesses dominate a commercial corridor that has long been home to immigrant enterprises—from the Eastern Europeans who put down roots a century ago to the Latinx residents that lead so many operations today.

Victor Gallardo and Sergio Villegas, long-time co-workers and now business partners, are part of that rich tapestry, as is Hangry’s, their 28-seat restaurant serving burgers, wings, pasta and more to area families and neighborhood visitors.

Galledo has spent more than 30 years working at Chicago restaurants, including eight years side by side with Villegas at a popular local pizza shop before they teamed up to open Hangry’s in 2018. The restaurant is part of a busy commercial stretch that includes a bakery, a grocery store, and insurance office, along with a auto body shop, a child care center, two small furniture stores and several salons

The partners didn’t own their space when they launched—which put them at risk for rent hikes and displacement. But, this year, they were able to purchase the property and begin building equity for the future with support from LISC and Wells Fargo.

The corner site includes two storefronts, one for the restaurant and another that currently houses a dry cleaners. For Gallardo and Villegas, the monthly cost of the loan is essentially the same as the rent they were previously paying, and the additional commercial space generates rental income to help support the property.

“When you look at Hangry’s, I think one of the most notable things from a lending perspective is that it was able to realize strong revenue even during some of the darkest days of the pandemic,” commented Alex Ruiz, commercial lending officer with LISC Chicago.

“The owners have been committed to their employees and to their community, with a clear understanding of how to meet the needs of customers as they navigate challenging external circumstances.”
— Alex Ruiz, Commercial Lending Officer, LISC Chicago, Chicago, IL

“In a sector that has been hit so hard by loss—especially in communities of color—I think that speaks to the value of their planning and management,” he said. “The owners have been committed to their employees and to their community, with a clear understanding of how to meet the needs of customers as they navigate challenging external circumstances. Now, they can also build equity by owning the property where they operate.”

LISC was able to help finance the Hangry’s purchase with support from a Wells Fargo Open for Business grant, which helped push the interest rate well below conventional market rates and ensure the financing structure worked for a still-young small business without large cash reserves.

“In communities where entrepreneurs struggle to access appropriate financing, it is incredibly important for CDFIs like LISC to find ways to fill capital gaps and support economic opportunity,” Ruiz noted. “Essentially, we are investing in the owners--their vision, their experience, their tenacity—as well as in the communities in which they operate. We’re grateful to Wells Fargo for their innovative support of this work.”

LISC Chicago has been active in Belmont Cragin for many years, leveraging its local expertise and resources to help build the capacity of neighborhood nonprofits, fuel community planning efforts, advance affordable housing developments, and back strategies to improve safety, streetscapes and health. (You can read more about some of this work in Belmont Cragin Sees a Renaissance — And Youth are Helping Lead the Way).

 “This is a closely knit community of engaged families and vibrant businesses, with great hope for the future” Ruiz said. “We’re proud to be part of it all.”