Special to Chicago Construction News staff writer
In a challenging lending environment, Tucker Development and Wingspan Development Group have secured $100 million in construction financing for a 294-unit residential development in Skokie. The Henry at Harms Woods, is a response to robust demand for multifamily housing in the Chicago suburbs.
The joint venture received the construction loan from California-based investment firm Kennedy Wilson, which provided a senior debt package. An unidentified insurance partner also contributed a mezzanine loan. This financing will enable the demolition of an existing 130,000-sq. ft. office building, paving the way for the new development to begin construction in the spring of 2024.
Yield Pro reports that the $100 million loan underscores the strong multifamily demand in the Chicago suburbs, where rents have surged by 5.4% year-over-year in the second quarter. This trend is fueled by higher borrowing costs, which have made homeownership less accessible, thereby boosting the rental market.
- 245 luxury apartments
- 49 rental townhomes
- 10,000 square feet commercial space at ground level
- courtyard, swimming pool and sun deck
- fitness center
- designated co-working stations
Situated near the 350-acre Harms Woods Nature Preserve and the Westfield Old Orchard mall, the development offers a prime location. The site is easily accessible via Interstate 94, providing convenient routes to downtown Chicago and the northern suburbs.
This project is part of a larger trend of revitalizing the Chicago suburbs. Tucker and Wingspan are not alone; other developers are also focusing on this area, indicating a strong market for luxury apartments and mixed-use developments.