$66 MIllion Financing Starts Suburban Chicago Luxury Project

A $66 million construction financing deal is moving a downtown Winnetka project forward after nearly two decades of false starts.

Murphy Development Group and Harrison Street CEO Christopher Merrill’s joint venture snagged the financing from Acres Capital for One Winnetka, Crain’s reported.

They plan to turn the 1.2-acre parcel at Lincoln Street and Elm Avenue into 59 luxury apartments with 20,000 square feet of retail space. The total project cost is pegged at $89 million, which amounts to $1.5 million per residential unit.

The site has defied previous development attempts dating back to before the 2008 financial crisis, with multiple proposals failing to move forward, including one as recently as 2020. Winnetka’s village board approved the current version in March 2024.

Construction is already underway, with completion expected by December 2026. The venture tapped Walsh Construction as general contractor.

Monthly rents are expected to range from $7,000 to more than $12,500, with units spanning one to three bedrooms. First move-ins are slated for January 2027, and developer John Murphy said there are already “dozens” of names on the waitlist.

“There’s no consistent profile — some are in their 40s and 50s. They’re transitioning out of larger homes and want more simplified living, and apartments do it,” he told the outlet.

The development has landed two retail tenants: Charles Schwab and a Mediterranean restaurant concept from Ballyhoo Hospitality, which together will take up roughly 12,500 square feet. Leases are being finalized with two tenants for another 5,000 square feet, with additional prospects in the pipeline, Murphy said.

Murphy and Merrill purchased the site in August 2023 for $14 million, according to public records.

The financing advances one of the highest-end multifamily projects on the North Shore, reinforcing demand for upscale rental product in Chicago’s affluent suburbs. Earlier this year, a pair of new condos in Highland Park sold for a record-breaking $3.7 million each.

— Judah Duke