The Northbrook Village Board has approved the sale of 8.8 acres of former Grainger Industrial Supply land in the downtown area for the development of luxury apartments and commercial space. The property at 1657 Shermer Road, purchased by the village in 2018, will be sold to Habitat Development for $10.5 million, contingent on the company obtaining necessary zoning approvals and possible tax increment financing.
Under the agreement, Habitat Development is required to place an initial earnest money deposit of $100,000 by the end of May, followed by two additional deposits of $200,000 each, according to Village Manager Cara Pavlicek. Village Attorney Steven Elrod emphasized that the village is not obligated to approve zoning changes or financing incentives, and if either is denied, Habitat can terminate the contract and recover its deposits.
The project envisions 320 luxury apartment units, including 191 one-bedroom, 111 two-bedroom, and 15 three-bedroom units, alongside approximately 8,000 square feet of commercial space intended for retail and restaurant use. Fifteen percent of the apartments, totaling 48 units, are planned to comply with the state’s affordable housing special assessment program.
Trustees expressed broad support for the development during the Village Board meeting on May 26. Trustee Johannah Hebl highlighted the benefit of increased residential density to support local businesses, noting the connection to the village’s pedestrian path system that links downtown to other neighborhoods. Trustee Heather Ross echoed the need for greater population density to drive change and growth in the area.
Concerns about traffic were raised by Trustee Matt Cassidy and Trustee Tamara Reese, who reminded the board that the site formerly employed about 3,000 workers when Grainger operated there. Both indicated that further details on traffic impact would be important as the process advances.
Trustee Joy Ebhomielen welcomed the inclusion of affordable housing and expressed optimism about the proposal’s potential benefits. Village President Kathryn Ciesla noted Habitat Development’s ongoing project at the former Solo Cup factory in Highland Park and encouraged residents to engage in the review process. She also suggested the new development would complement the adjacent Poupard Place complex, a nearby 48-unit apartment building for individuals with developmental or intellectual disabilities, which is set to hold a ribbon-cutting ceremony on June 30.
Earlier this year, the Village Board unanimously amended an agreement to enable the Housing Opportunities Development Corporation to invest nearly $24 million in public and private funds for the construction of Poupard Place on 1.5 acres of the former Grainger site.
The new development is viewed as a key component in the ongoing revitalization of Northbrook’s downtown, aimed at boosting residential population density and supporting economic growth in the village center.