Harlem Irving’s Mount Prospect multifamily sells for $32M

Multifamily developers’ investments in Mount Prospect continue to pay off, with the latest coming on a new luxury apartment complex in the northwest Chicago suburb that sold for $32 million.

Norridge-based Harlem Irving Companies completed the 97-unit building at 10 North Main Street, in the suburb’s downtown, 14 months ago. It sold the development to H.A. Langer & Associates, according to Cook County public records.

Monthly rents at the apartment complex range from $1,790 for a 600-square-foot studio to $3,30 for a two-bedroom apartment.

CBRE’s John Jaeger and Justin Puppi represented Harlem Irving in the deal. Puppi called it a “successful transaction in turbulent times.” H.A. Langer & Associates’ Jeff Swhier cited the suburb’s strong retail performance and the property’s proximity to transit and location in the city’s downtown. He said his firm, which owns 1,500 units spread over the Chicago area and Madison, Wisconsin, expects demand for luxury apartments to continue for at least the next two years.

Multifamily availability is near record lows in suburban Chicago, falling to around 3 percent in June, according to a third-quarter report from Marcus & Millichap that cited the pandemic-induced flight to the suburbs that has continued among aging millennials. Rent growth throughout the Chicago metro area has stayed strong, according to the report, which forecasts a year-over-year increase of almost 10 percent.

Harlem Irving, whose residential portfolio also includes luxury apartment buildings in Chicago’s Gold Coast and River North neighborhoods as well as towers on the city’s North Side, isn’t the only developer seeing potential in downtown Mount Prospect.

Wheaton’s T2 Capital Management has begun work to raze the city’s former fire and police headquarters to build a six-story, 88-unit residential project at 112 East Northwest Highway.

Investors are also taking an interest in the suburb. Bayshore Properties bought the 344-unit Mount Prospect Greens property in June for $49 million, a 50 percent increase in the property’s value from its previous sale in 2014.

Mt. Prospect, meanwhile, is eyeing a new tax increment financing district to spur development and investment on the south end of town, a tool it has already used to encourage development downtown.