Redwood Living Brings Multifamily to Chicago Suburb McHenry

Redwood Living got the greenlight for a multifamily project in McHenry.

The McHenry City Council approved the annexation of 122 acres on the southeast corner of Chapel Hill Road and Route 120, including 27 acres designated for Ohio-based Redwood’s proposed development of 177 rental townhomes, Shaw Local reported.

The decision targeted the lack of rental inventory in the Northwest Chicago suburb, with the project aimed at empty nesters seeking low-maintenance rental options.

The development will feature single-story, two-bedroom, two-bathroom townhomes with private patios ranging from 1,300 to 1,600 square feet.

Rents are expected to rival the cost of mortgages for homes valued at $400,000, a point of contention for some critics.

While the mayor and most aldermen supported the development, two opposed it, citing concerns about the lack of owner-occupied homes.

“McHenry needs more single-family affordable homes. I think a rental community does not solve this problem,” Alderwoman Chris Bassi said.

In addition to the 27 acres slated for townhomes, another 95 acres will be reserved for future commercial and residential developments. Redwood, led by CEO Steve Kimmelman, still needs final plat approval before construction can commence.

Elsewhere in McHenry, Miami-based homebuilder Lennar is planning a 584-home community on the town’s far west side. The project calls for two- and three-bedroom homes with garages, priced between $200,000 and $400,000.

Multifamily has been the top asset class for investors for the past few years, and that trend is expected to continue through next year, as home prices continue increasing, even amid high interest rates, according to Colliers.