redfield to redevelopment libertyville, illinois john spoden, aicp, director of community...

Redfield to

RedevelopmentLibertyville, Illinois

John Spoden, AICP, Director of Community Development, Village of Libertyville

John McLinden, StreetScape Development, LLC

Greenfield – development on previously undeveloped site

Brownfield – development on environmentally challenged site

Redfield – development on foreclosed property

DEFINITIONS

Libertyville, IL• Located 35 miles NW of Chicago at commuter rail stop

• Incorporated 1882

• Population 21,800

• Median household income $105,000

• Award-winning Main Street Community

BACKGROUND

BACKGROUND

DO

WN

TO

WN

TRAIN STATION

3 MI TO INTERSTATE

SCHOOL STREET

BACKGROUND

BACKGROUND

BACKGROUND

• 1970s – Village of Libertyville identifies School Street as key future development site and commits to acquiring the 4 acre site

• 1976 – Village purchases first house

• 1976-2002 – Village systematically purchases each property as it comes on the market

• 2004 – Village issues RFP to nine pre-qualified developers to re-develop the site

• 2005 – Village selects developer based on concept of 31 Brownstones and 12 condos in the school building

• 2006 – Village approves original Planned Development

• 2007 – Construction begins on infrastructure and first 5-unit building

• 2008 – Village issues occupancy permits for first 5 units (4 of 5 sold)

• 2009 – Bank forecloses on property – a redfield is created

• 2009 – Village is approached by multiple developers about proposed concepts

BACKGROUND

MOVING FORWARD - PRE-DEVELOPMENT

• January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support

MOVING FORWARD - PRE-DEVELOPMENT

The “Big Idea”

MOVING FORWARD - PRE-DEVELOPMENT

Change development concept: townhomes

single-family homes

The “Big Idea”

MOVING FORWARD - PRE-DEVELOPMENT

MOVING FORWARD - PRE-DEVELOPMENT

MOVING FORWARD - PRE-DEVELOPMENT

MOVING FORWARD - PRE-DEVELOPMENT

MOVING FORWARD - PRE-DEVELOPMENT

MOVING FORWARD - PRE-DEVELOPMENT

MOVING FORWARD - PRE-DEVELOPMENT

MOVING FORWARD - PRE-DEVELOPMENT

• January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support

MOVING FORWARD - PRE-DEVELOPMENT

• January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support

• October, 2009 – StreetScape enters into purchase agreement with bank

• January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support

• October, 2009 – StreetScape enters into purchase agreement with bank

• February, 2010 – StreetScape files to amend the Planned Development

MOVING FORWARD - PRE-DEVELOPMENT

• January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support

• October, 2009 – StreetScape enters into purchase agreement with bank

• February, 2010 – StreetScape files to amend the Planned Development

• August, 2010 – Village approves the amended Planned Development

MOVING FORWARD - PRE-DEVELOPMENT

• January-September, 2009 – StreetScape Development, LLC envisions new development plan and gains Village support

• October, 2009 – StreetScape enters into purchase agreement with bank

• February, 2010 – StreetScape files to amend the Planned Development

• August, 2010 – Village approves the amended Planned Development

• September, 2010 – StreetScape closes on the property

MOVING FORWARD - PRE-DEVELOPMENT

September, 2010

CLOSING

January, 2012

SCHOOL STREET AT PRESENT

SCHOOL STREET AT PRESENT

• Phase 1 pricing - $449,000 - $689,000

• Current pricing - $525,000 - $810,000

• 18%(+/-) price increase

• Sold without model home

• Ten closings to date (average - $628,673)

SCHOOL STREET AT PRESENT

SCHOOL STREET AT PRESENT

SCHOOL STREET AT PRESENT

SCHOOL STREET AT PRESENT

SCHOOL STREET AT PRESENT

SCHOOL STREET AT PRESENT

How was the project financed?

HOW DID WE DO IT?

How was the project financed?

HOW DID WE DO IT?

• Purchase property with cash

HOW DID WE DO IT?

How was the project financed?

• Purchase property with cash

• Investor requirements

HOW DID WE DO IT?

How was the project financed?

• Purchase property with cash

• Investor requirements

• zoning approval

HOW DID WE DO IT?

How was the project financed?

• Purchase property with cash

• Investor requirements

• zoning approval

• pre-sell 6 homes

HOW DID WE DO IT?

How was the project financed?

• Purchase property with cash

• Investor requirements

• zoning approval

• pre-sell 6 homes

• Purchase property with cash

• Investor requirements

• zoning approval

• pre-sell 6 homes

• Secure bank construction financing on

individual homes (same bank that

foreclosed on property)

HOW DID WE DO IT?

How was the project financed?

Real Estate 101

HOW DID WE DO IT?

Location, Location, Location

Real Estate 101

HOW DID WE DO IT?

Real Estate 102

HOW DID WE DO IT?

Marketing, Marketing, Marketing

Real Estate 102

HOW DID WE DO IT?

Big Idea #2

HOW DID WE DO IT?

Sarah Susanka and Not So Big

HOW DID WE DO IT?

What’s the attraction of big?

HOW DID WE DO IT?Sarah Susanka and Not So Big

It’s a quality, not a quantity!

The feeling of “Home”has almost nothing to do with size

HOW DID WE DO IT?Sarah Susanka and Not So Big

HOW DID WE DO IT?Sarah Susanka and Not So Big

HOW DID WE DO IT?Sarah Susanka and Not So Big

Not So Big Showhouse

Grand Opening held November 19, 2011

Open 12 weekends for 10 hours per weekend

5,350 visitors to date

Average of 1 visitor every 1.3 minutes

HOW DID WE DO IT?Sarah Susanka and Not So Big

HOW DID WE DO IT?Selling Approach

HOW DID WE DO IT?Selling Approach

Selling Approach

• Design Meeting #1 – “How do you live?”

• It’s personal

• A home is the ultimate Consumer Product

• Controlled customization

HOW DID WE DO IT?

Retain top local Realtor

HOW DID WE DO IT?Marketing, Marketing, Marketing

HOW DID WE DO IT?Marketing, Marketing, Marketing

HOW DID WE DO IT?Marketing, Marketing, Marketing

HOW DID WE DO IT?Marketing, Marketing, Marketing

HOW DID WE DO IT?Marketing, Marketing, Marketing

PBS Nightly Business Report: Broken Developments / Redfield Sites

HOW DID WE DO IT?Marketing, Marketing, Marketing

HOW DID WE DO IT?Marketing, Marketing, Marketing

HOW DID WE DO IT?Marketing, Marketing, Marketing

HOW DID WE DO IT?Marketing, Marketing, Marketing

Marketing, Marketing, Marketing

HOW DID WE DO IT?

WHY DID IT WORK?

• Public / Private Partnership

• Downtown Libertyville Location

• Emotional Connection / Selling Approach

• Create Great Product unlike anything else in the market

• Marketing, Marketing, Marketing

• Deliver the Ultimate Consumer Product

WHAT’S NEXT?

SCHOOL STREET

WHAT’S NEXT?

SCHOOL STREET

QUESTIONS?