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Developers have exploratory talks on senior and multifamily projects; rental market may need municipal support
Summary
Commissioners and Mallon reported meetings with NF Companies and other developers about senior and multifamily redevelopment; Mallon said a rental market study is underway and estimated local rents around $2.50 per square foot versus a likely required threshold above $3 to make new projects feasible without gap funding.
Village staff and the consultant summarized exploratory talks with multi‑family developers, including NF Companies, about potential senior housing and rental projects in Villa Park. Mallon said the developer indicated it would perform a rental market study and that, based on Mallon’s estimate, average rent in the area is about $2.50 per square foot while current construction costs and interest rates typically require rents north of $3 per square foot to support new development without additional subsidies.
Staff described one developer’s interest in certain properties and said the developer had conducted preliminary due diligence but had not yet shared a completed market study. Mallon noted that municipalities sometimes help bridge feasibility gaps through tools or incentives, but no specific commitments or programs were approved during the meeting.
Commissioner Stash noted local investment activity, saying an investor from Dallas purchased Ovaltine properties for about $90 million earlier in the year, and reminded the commission of a planned seven‑story apartment in the Villa Avenue district anticipated by 2027. Those examples were presented as signs of market momentum, but commissioners acknowledged that individual project feasibility depends on site size, owner willingness to sell and rental economics.
Next steps included continued outreach to developers, awaiting NF Companies’ market study results and tracking whether municipal incentives or gap‑financing would be necessary to advance specific projects.
