Commercial real estate firm Bradford Allen has secured public funding to assist with a $130 million residential and retail development in Arlington Heights.
The village of Arlington Heights approved $17.8 million in tax increment financing to support the construction of an eight-story apartment building with 301 units and 26,000 square feet of street-level retail at the town’s southern gateway, the Daily Herald reported.
The 3.7-acre development site, at the southeast corner of Arlington Heights and Algonquin roads, is vacant following the demolition of a five-story office building and several commercial structures.
Development of the residential building will kick off the first phase of a four-part plan to reshape 16 acres near the Jane Addams Tollway, a project expected to take up to eight years. Even though zoning was approved and demolition completed, groundbreaking was delayed until the public funding was secured.
“We’re fighting against time, and we want to get busy on this building,” said Brian Carley, Bradford Allen’s executive managing director. “And as they say, time is money.”
Bradford Allen will not receive any payments until the project is complete, said Charles Witherington-Perkins, Arlington Heights’ director of planning and community development.
The incentives will be disbursed in three stages: $12.9 million upon final occupancy, $2.9 million 18 months later and $2 million to cover construction interest. However, if the project’s internal rate of return falls below the projected 11.42 percent, the second payment may be reduced, Witherington-Perkins said.
The public subsidies are crucial to making the project financially viable, village officials said.
The agreement requires Bradford Allen to pay a little over $900,000 in impact fees to local taxing bodies. It also mandates that 10 percent of the apartments — 30 units — be rented at affordable rates to those earning 60 percent or less of the area median income.
The developer has until October to start construction, which is expected to be completed by July 2026.
— Andrew Terrell
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