CHICAGO—The MACK Companies has purchased Fay's Point, a 27-acre development in south suburban Blue Island, just 15 miles south of Chicago. The site includes 30 existing townhomes, home sites for 44 new-construction townhomes, five lots capable of holding up to 236 new multifamily units, and a marina with more than 80 boat slips.

“We're getting back to our roots with building ground-up, new construction residential properties,” says James McClelland, president and CEO of Tinley Park-based MACK. “Before establishing MACK, I spent 16 years acquiring land and building new homes. This project is a perfect extension of our core business and continues our mission to raise the quality of life of our customers, whether they are renters or homeowners.”

Recently, MACK has been purchasing large numbers of foreclosed homes, most within 30 miles of its headquarters, and continuing to manage the properties after transferring them to American Residential Properties, an Arizona-based REIT. MACK and ARP have an agreement which they say will transfer 30 to 50 homes each month and may eventually total 1,000 homes.

Framed by the Little Calumet River, Fay's Point is a marina community developed in 2006. MACK will develop this project under MACK Estates, a division of MACK specializing in for-sale properties–both redeveloped luxury foreclosed homes and ground-up construction. The firm established MACK Estates in 2012 when it acquired more than a dozen foreclosed luxury single-family homes that it redeveloped and sold.

“Given Chicago's lack of quality for-sale inventory, there is no denying the pent-up demand for new construction in the market, and we're starting to see it really accelerate with the addition of new households,” says Eric Workman, vice president of sales for MACK.

As part of the long-term strategy at Fay's Point, MACK will develop 44 new-construction townhomes that will offer approximately 1,750 square feet, three bedrooms, two baths and an attached two-car garage. Construction will begin in the third quarter, with the first deliveries in the fall.

MACK purchased five additional lots in the transaction that can accommodate up to 236 new multifamily units, and will develop them in later phases of the project.

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Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.