UPDATED: April, 21, 12:00 PM ET
Core Spaces aims to kickstart the build-to-rent market in Chicago just like it has in other parts of the country.
The local firm wants to build 140 rental homes in Glenview at 1900 East Lake Avenue, which is currently home to the vacant Scott Foresman office campus that the developer would raze upon acquiring the property, Crain’s reported.
Core Spaces, led by CEO Marc Lifshin, is scheduled to request a zoning change and present its plans for the 19.4-acre site before the village’s New Development Commission on April 26. The firm is in talks to buy the property from R2 and Capital Management — a joint venture that bought the lot through a foreclosure sale last year.
The built-to-rent market has exploded over the past few years, as millennials seek single-family homes in the suburbs with better public resources and a backyard, without the headache that comes with home ownership. It’s also a necessity for some who can’t afford a down payment.
BTR has piqued the baby boomer generation as well, providing opportunities to maintain adequate living space while avoiding prolonged ownership responsibilities.
Core Spaces is mostly known for its student housing projects but began leaning into a BTR strategy in 2020. The firm began its first project outside of Dallas, with more developments in Austin, Denver and Orlando coming.
According to Florida-based Hunter Housing Economics, 132,000 BTR homes are projected to be built in the U.S. this year, up nearly 11 percent from 119,000 in 2022. The consulting firm expects this number to rise to 167,000 by 2025.
The Glenview development is slated for 112 single-family homes ranging from 875 to 2,460 square feet and 28 townhomes of 950 to 1,730 square feet, the outlet reported. Amenities will include a 3,500-square-foot clubhouse, swimming pool, co-working spaces, fitness center and a sport court.
The project may get pushback from preservationists, though, who believe the existing building at the site is best suited for reuse due to its distinctive architecture.
Correction: A previous version of this story indicated a development price of $85 million was incorrectly reported by Crain’s. Further, it was reported that the project was in partnership with Harrison Street Real Estate Capital, but the firm is not involved at this stage.
—Quinn Donoghue
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