Another national homebuilder plans to demolish a suburban Chicago office building for a new construction residential development, at least the third project like it planned this year.
M/I Homes of Chicago has proposed 64 townhouses in Naperville, Illinois, on 12.18 acres of what is now a 67,500-square-foot office property occupied and owned by the Illinois Health and Hospital Association. According to the homebuilder, the association only utilized 50% of the space due to a rise in remote work.
It’s another example of the trend of office-to-residential land conversions in greater Chicago. M/I Homes Vice President of Land Scott Barenbrugge said undeveloped land is scarce in Naperville, making office redevelopment an attractive option.
National builder Pulte Homes recently purchased offices in Hoffman Estates and Deerfield to make way for new single-family and townhouse developments. The Deerfield project is slated to create 42 single-family homes, and the Hoffman Estates development is expected to bring 69 townhouses. Each city is located about 30 miles outside downtown Chicago.
M/I Homes received a unanimous recommendation for approval from the Naperville Planning and Zoning Commission on Wednesday. This would be M/I Homes’ first office redevelopment in the area, but the builder has 22 active developments across the Chicago market and others in the works for Naperville, according to Barenbrugge.
Houses at the proposed project, called Northwoods of Naperville, will be priced between $700,000 and $900,000. Barenbrugge confirmed the office building is set to be demolished after city council approval and a land deal closes in June. Development would begin in late summer.
"We appreciate the fact that it's so close to transportation and employment, the retail and dining in Freedom Commons is right down the street, you have Danada [Forest Preserve] up the street in Wheaton — it has a lot of great conveniences," Barenbrugge said in an interview.
In Naperville's most recent land use master plan, the area where Northwoods would be built is highlighted for redevelopment to medium-density housing within the next two decades. Rather than seek residential zoning, M/I Homes requested an office, commercial, and industrial classification to act as a transitional zone between business and residential areas, the builder said during Wednesday’s hearing.
Northwoods of Naperville, if completed, would be located a mile away from Pulte Homes’ Naper Commons development, which broke ground in 2021. The 227 single-family home project also converted former office land, previously owned by Nokia, to residential. According to Pulte’s website, that development is sold out.
Buyers sought
The Northwoods of Naperville houses are aimed at young professionals and empty-nesters seeking a low-maintenance community, according to filings with the city. Barenbrugge said the proximity to employment, transportation and restaurants tied with the price tag appeals to this buyer profile.
The homes will have two styles with varying levels and elevations. The Urban Series includes three-story townhouses with rear-loaded garages, and the Revival Series features two stories and front-loaded garages. Exteriors on both styles include gray siding, cedar wood accents, and black brick, while interior aesthetics are described in plans as modern.
According to plans filed with Naperville, the Revival Series homes include three bedrooms, three bathrooms, and between 1,994 and 2,436 square feet. Floor plans include a second-floor loft, mud room, three walk-in closets, and optional luxury bathroom upgrades, such as freestanding bathtubs, larger walk-in showers, and baths with tubs and showers.
Proposed floor plans for the Urban Series are between 2,474 and 3,111 square feet with two to four bedrooms, three to four bathrooms, and two roof decks. These plans include options for ground-level primary bedrooms, which could attract older empty-nesters. If purchased before construction, buyers have the option to select from several floor plans in the Urban Series with varying bedroom and bath configurations.
The property is located on a secluded lot with limited road frontage, something not ideal for an office campus, noted M/I Homes, but works well for residential. It’s bordered by a forest preserve, an unincorporated neighborhood, and Interstate 88, a major highway.
The builder plans to retain 65% of the total area as open space, increase landscaping to provide a buffer between the development and the existing homes, and position townhouses farther back on the lot away from the busy road.