The Highland Park, IL-based Pickus decided to sell the parcel because "they have committed their capital to other projects," John Simon, senior director for Cushman & Wakefield of Illinois Inc., tells GlobeSt.com. He adds that the goal is to find one buyer for the 19-acre multifamily-zoned land and four-acre retail tract at the intersection of Delany Road and Sunset Avenue. The C&W marketing team includes director Brian Pohl and Adam Simon.
John Simon points to the 483-unit Amli at Osprey Lakes' 97% occupancy, with rents hovering $1.20 per sf, as an example of the market demand. The Pickus tract could support up to 500 units. "Clearly, the density is way above the market," he says.
Pohl says the "sweet spot" is 310 to 320 units, possibly as many as 350. Based on market demographics, the expected all-in development cost would be $120,000 to $130,000 per door.
[IMGCAP(2)]Pohl says the retail land is expected to have 15,000 sf to 20,000 sf. Neighborhood retail is the most likely outcome. Retail-zoned land in the immediate area is selling for $350,000 to $400,000 per acre, but reportedly the Pickus tract is tagged at $6.7 million.
The development site is close to Interstate 94, the Metra train station in Waukegan, IL, Great America and Gurnee Mills, the state's largest outlet store. It's also 1.5 miles north of the recently redeveloped Lakehurst Mall and near Abbott Laboratories in Abbott Park, IL. "There is a substantial demographic in that marketplace for rental properties," Simon says.
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