research
Ready-to-start homes can save time and money
SHARE THIS ARTICLE
FONT SIZE
A trio of newly indexed parcels in the Chicago area provide opportunities for developers to avoid the hassle of getting zoning approvals or even coming up with new plans.
When interest rates rose, some developers abandoned potential projects due to financing problems: lenders consider structured loans to be riskier than classic mortgages. But in some cases, landlords have already done the dirty zoning and planning boxes, providing the opportunity to resell progression sites at a premium price.
The most sought-after vacant homes benefit from redevelopment-friendly zoning and fast-track allocation proposals that have been given the green light through municipalities.
“One of the hardest parts of getting land is getting the rights,” said Tyler Hague of Colliers, adding that citizens and local leaders “take out the torches and the gallows” to prevent development.
The Hague is marketing a ready-to-build project in Waukegan that includes rights to 364 apartments. Owners DRE Group, Stone Beam Development, and Cardinal Capital have obtained detailed plans approved by the Waukegan City Council for a four-story apartment complex comprising 166 one-bedroom apartments, 163 two-bedroom units, and 35 three-bedroom units.
It’s unclear why the owners are selling. They took out a $3 million loan on the assets in January 2023, according to Lake County records. Representatives for the company responded to requests for comment.
In Chicago, two progression centers called Have also recently appeared on the market.
Half-acre assets along the Chicago River are for sale at 2221 West Oakdale Avenue in Roscoe Village, for more than 30 townhomes and 4 single-family homes.
However, the land could most likely house a higher density, said the seller’s agent, Adam Thomas of SVN Chicago Commercial. In this case, the customer will have to restart the zoning process. A client can also propose a lease based on the past of the land. Soft commercial zoning, without much difficulty, he said.
“It’s not a ready-to-build structure site, but it’s smart that there’s been some groundwork,” Thomas said.
The townhouse progression was proposed and eventually abandoned by the previous owner, CA Ventures. The Chicago-based developer has found itself in a tricky situation recently as it avoids lawsuits and bank foreclosures on other projects. The company sold Roscoe Village’s assets in 2017 for just under $4. 8 million to the current owner, personal investor Eugenio De Aguero, who no longer plans to redevelop the site, according to public records.
De Agüero may be contacted for comment.
In the South Loop, a redevelopment that could take shape due to rising interest rates is presented as an opportunity for the buyer.
Megachurch Willow Creek faced monetary hurdles early in the pandemic and planned to rebuild its South Loop location at 1319-1347 South State Street, with a developer, but was unable to complete the task as interest rates rose.
After her church closes, she favors a developer who will bring a new vision to the property, which can accommodate up to two hundred sets under existing zoning, and up to 503 sets if the client contributes to a municipal fund that provides bonuses to developers. square footage allocates for its projects and distributes the budget to industrial corridors in need of investment on the south and west sides, according to CBRE’s marketing materials.
“As the economy has evolved and interest rates have risen, the time required to complete this task has become longer and longer. Even with the strong expansion and smart aptitude we’ve noticed at Willow Chicago over the past few years, we’ve been facing the difficult, but necessary, resolution to close,” one church said. (The church has other sites in the Chicago area. )
CBRE was contracted to market the South Loop site as a redevelopment opportunity, and broker Tom Svoboda handled the listing. It is also conceivable that a new client will use the property’s existing facilities.
The 56,000-square-foot assets include offices, daycare, classrooms and a 730-seat auditorium. It’s also close to the upcoming megaproject The 78, which developer Related Midwest and the Chicago White Sox are also pushing for investment for a new Major League. Baseball stadium.