In a challenging lending environment, Tucker Development and Wingspan Development Group have successfully secured $100 million in construction financing for a 294-unit residential development in Skokie, Illinois. This venture, known as the Henry at Harms Woods, is a testament to the robust demand for multifamily housing in the Chicago suburbs.
The Financing Deal
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-square-foot office building, paving the way for the new development to begin construction in the spring of 2024.
Market Trends
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.
Project Details
The project is designed by HKM Architects + Planners and will be constructed by Nicholas & Associates and will feature the following:
- 245 luxury apartments
- 49 rental townhomes
- 10,000 square feet commercial space at ground level
- Studio, one-, two- and three-bedroom units
- Expansive courtyard
- Swimming pool and sun deck
- Lounge and grilling areas
- Fully appointed fitness center
- Designated co-working stations
Location and Accessibility
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.
The Bigger Picture
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.
Conclusion
The Henry at Harms Woods isn't just another residential development; it's a testament to the resilience and innovation in the construction industry. Amidst a challenging lending environment and rising construction costs, Tucker Development and Wingspan Development Group have managed to secure a whopping $100 million in construction financing. This project is set to be a cornerstone in the Chicago suburbs, offering not just housing but a lifestyle. For commercial construction professionals, this project represents the kind of large-scale, high-stakes work that can define a career.
Call to Action: Are you a commercial construction worker looking for your next big
project? Keep an eye on the Henry at Harms Woods. With demolition scheduled for
this winter and construction set to begin in the spring, there will be plenty of
opportunities for skilled tradespeople to leave their mark on this ambitious project.
Don't miss your chance to be part of constructing a modern, luxury living space that
will serve as a model for future developments.
