Multifamily investors have taken notice of northwest suburban Mount Prospect’s welcoming reception to new downtown development, and Jeff Brown’s firm is the latest to oblige.
Work has begun to raze the former Mount Prospect fire and police headquarters where Wheaton-based T2 Capital Management, whose CEO is Brown, will replace the former municipal building with a six-story, 88-unit project. It’s being dubbed HQ Residences, and will rise at 112 East Northwest Highway in the Chicago suburb’s downtown.
The village recently sold the property to the developer for $2 million, funds the local government will put into the Prospect and Main tax increment finance district fund to support other downtown projects.
T2 is expanding its Illinois multifamily holdings in Mount Prospect with the project as the northwest suburb has drawn investor interest in local assets that are both old and new this year. In June, the real estate investment firm Bayshore Properties bought the 344-unit Mount Prospect Greens property that was first built nearly 50 years ago for $49 million, a 50 percent increase in its value from its previous sale in 2014.
A newer apartment complex completed last year by developer Harlem Irving Companies at a reported cost of $20 million was also just sold, according to people familiar with the offering, though details of the transaction such as its price and the buyer have yet to be disclosed by the parties or in public records.
Mount Prospect’s TIF financing yielded enough success in kickstarting development in the suburb’s downtown that officials proposed creating another TIF district to encourage development on the village’s south end earlier this year.
The proposed TIF area — which caps the values at which properties within the district are taxed for 23 years and funnels extra funds from rising values into new developmen — is bounded on the north by Dempster Street, on the west by Busse Road, on the east by an area just west of Elmhurst Road, and on the south by Oakton Street. Properties within the TIF district include a $2.5 billion data center complex on the former United Airlines headquarters that workers broke ground for in August.
T2’s other projects in Illinois include an eight-condo project completed in 2017 in Lincoln Park as well as a 17-condo project with 12,000 square feet of retail it built in Naperville called Central Park Place, according ot the firm’s website. It has larger multifamily rental properties also underway in markets such as Nashville, Tennessee and Huntsville, Alabama.
Mount Prospect officials have said the HQ Residences project is expected to be completed in about two years.
Read more
Commercial
Chicago
Synergy Construction bringing apartments to Mundelein