New Affordable Townhomes Planned on 27 Acres in Chicago's Blue Island
Mack Companies, one of Chicago's premier single-family home re-developers, set to launch Fay's Point property for summer sales.
They've got 27 idyllic acres to develop. The plan is to build 44 new homes on the Blue Island site bordered by the Little Calumet River, about 17 miles outside Chicago. It sat shuttered and half-finished for four years before Mack Cos. bought it back to life and purchased it for $1.5 million. They have land for 236 multifamily units and a marina with more than 80 boat slips in prep. But that’s a dig for a different day.
For Tinley Park-based Mack Cos., the strategy to pilot new construction and take existing REO properties into the rental and sales market is part of a long game. James McClelland, president and CEO, says the “market is prime."
True. They’re catching a real estate tail wind coinciding with an appetite for every strata of housing. From luxury high-rises to the $200,000 affordable 3-bedroom, 2-bath townhomes planned for the Fay’s Point development. A total of 30 pre-existing homes were part of the deal, with 17 of those currently owner-occupied. They’ll complete the 13 unfinished townhomes – two and three bedroom units with floor plans from 1,800 to 2,600 square feet – by summer. Fall deliveries are quoted for the initial phase of new homes, the first eight, averaging around 1,750 square feet. All these properties are offered through Mack Estates, a new spoke in their wheel to target sales to consumers.
Mack Cos. made the news rounds in December with the $28 milllion sale of its 196 suburban Chicago single-family homes portfolio to Scottsdale, Ariz. firm American Residential Inc. A few months later, in March, they closed another deal with ARI – $12 million for 93 homes.
Those deals turned doubters into, if not believers, rapt listeners. The single-family home asset class is not a fad. Builders can’t build them fast enough; rehabs and rentals are swallowed by demand. And pointedly, the model to flip distressed real estate and sell turn-key bundles has resurfaced with respectability. Companies with a track record like Mack Cos., in the industry since 1998, have especially piqued Wall Street’s attention.“The rental market is super-hot,” Eric Workman, vice president of sales for Mack Cos. told Fox News in April. “Business for us has never been better.”