The Niles Village Board approved waiving up to $500,000 in building permit fees for a 180-unit luxury apartment building at 6633 N. Milwaukee Ave. at its meeting on March 26. According to the village’s economic development director, the village would see a return on its investment via property and sales tax revenues.
The developer building the property took over after another developer could not get financing to build an apartment complex on the site.
According to village documents, the 6633 N. Milwaukee Ave. development will include public art, a ground-level outdoor swimming pool and sun deck, fire pits, seating, a grilling station, ground floor club room, fitness room, rooftop clubroom and deck, walking track and 270 ground level parking spaces. The total cost of the construction is approximately $52 million, and if it had been in a tax increment financing district, it would have been eligible for $6 million in tax increment financing, according to village documents.
The board initially gave approval for a previously-proposed project, T-2 Capital Management’s proposal to build a six-story, 235 luxury apartment unit complex at 6633 N. Milwaukee Avenue, in November 2022. The original plans would have created 22 studio units, 133 one-bedroom units, 70 two-bedroom units, and 10 three-bedroom units, according to village documents. Had those plans moved forward, the development would have been one of the most dense residential buildings in Niles, second only to 8975 W. Golf Road.
But the developer, Tom Lowe from T-2, came back to the village board in May 2023 to amend the development’s plan to reduce the apartment complex to 180 units and reduce the building to five stories on the east side and four stories on the west. Per village documents, the developer said the rising cost of construction materials made the previously approved plans unfeasible. According to village documents, T-2’s construction plans fell through in late 2023 because they could not get financing for it.
According to the village’s director of economic development, John Melaniphy, construction never officially began when T-2 owned the property. The only thing done was tearing down the former site of the Hesco Janitorial Supplies building.
Melaniphy said he reached out to developers who would be interested in buying the property and keeping the amended 2023 plans moving. Noah Properties, a development group based in Schiller Park, was the only firm interested and requested that building permit fees of up to $500,000 be waived to take on the project. Noah Properties also made architectural changes to the building’s bricks, windows, lobby entrance, rooftop amenities, and public art and planned for the building to be three feet taller. Melaniphy said that the village waived $500,000 in building permit fees for T-2.
The final breakdown of the apartment complex included five studio units, three junior one-bedroom units, 94 one-bedroom units, 75 two-bedroom units and three thee-bedroom units.
Melaniphy said the development benefits the village by attracting new residents that will spend in Niles.
“The new $52 million development will enhance the property tax revenues on the property and generate new sales tax revenues as these residents buy groceries, general merchandise, gasoline, and other purchases,” he said.
According to Melaniphy’s tax revenue analysis and the level of leasing at the apartment complex, “the village would realize a quick return on investment on a prominent parcel that otherwise may stay vacant for a period of time, all the while not contributing to the village’s tax base. This project represents an opportunity to develop a long-vacant property with a vibrant new building and adding new revenue to the tax base.”
Construction is expected to begin this month and last 13 months, with a targeted completion date of May 2025. The developer said pre-leasing will begin in October 2024, and anticipated having 95% of its units leased by January 2025.
