SR Jacobson is hoping to cash in on Chicagoland’s hot suburban multifamily market.
The developer last week listed the Orland Ridge Towhomes and Villas in Orland Park with JLL. SR Jacbson, along with Lormax Stern, developed the community which consists of 294 townhomes and ranch-style rental homes as well as a community center with a pool. Construction on the project was completed in 2023.
Public records on the property are limited but in the 2024 assessment cycle, the Cook County Tax Assessor valued the property at about $41 million. The listing doesn’t include an asking price.
The property is 97 percent occupied. Rents range from $2,600 to $3,600.
Multifamily investors have been eyeing the Chicago suburbs as a place to tap into the region’s strong economy and rent growth without dealing with the city’s uncertain political climate.
In a show of confidence in the region last month, multifamily giant Morgan Properties closed on a $501 million portfolio of 11 apartment buildings across the Midwest.
And more recently, Wisconsin-based developer Continental Properties secured a buyer for Authentix McHenry, a 288-unit townhome complex the company developed in McHenry County. A sale price has not been recorded.
But the Orland Park development doesn’t enjoy all the advantages of the outer suburbs because it is located in Cook County. Property tax battles in the county have led to unpredictable bills that are scaring away commercial buyers.
Representatives of SR Jacobson and JLL brokers Mark Stern and Kevin Girard did not respond to requests for comment.
Commercial properties are not only taxed at a higher percentage of their value than residential properties — a longtime issue — but the county’s recent tax reform attempts have also added volatility to the mix. Even as market values correct to reflect the impact of the pandemic, assessments haven’t adjusted at the same rate. Additionally, a whiplash effect from steep cuts in value to initial tax values that are allowed through appeals to the county’s Board of Review has added to the uncertainty.
Still, the SR Jacobson development can capitalize on its relatively unique townhome format and strong opportunity for rent growth. Marketing materials note there are no single family and townhome rental developments currently under construction in southwest Cook County and only one under construction in a five mile radius that stretches into neighboring Will County.