Redfield
to
Redevelopment
Libertyville, Illinois
John Spoden, AICP, Director of Community Development, Village of Libertyville
John McLinden, StreetScape Development, LLC
DEFINITIONS
Greenfield – development on previously
undeveloped site
Brownfield – development on environmentally
challenged site
Redfield – development on foreclosed property
BACKGROUND
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
TRAIN
STATION
SCHOOL
STREET
3 MI TO INTERSTATE
BACKGROUND
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
MOVING FORWARD - PRE-DEVELOPMENT
• January-September, 2009 – StreetScape Development, LLC envisions
new development plan and gains Village support
MOVING FORWARD - PRE-DEVELOPMENT
MOVING FORWARD - PRE-DEVELOPMENT
The “Big Idea”
MOVING FORWARD - PRE-DEVELOPMENT
The “Big Idea”
Change development concept:
townhomes
single-family homes
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
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
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
CLOSING
September, 2010
SCHOOL STREET AT PRESENT
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
HOW DID WE DO IT?
How was the project financed?
HOW DID WE DO IT?
How was the project financed?
• 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
HOW DID WE DO IT?
How was the project financed?
• 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?
Real Estate 101
HOW DID WE DO IT?
Real Estate 101
Location, Location, Location
HOW DID WE DO IT?
Real Estate 102
HOW DID WE DO IT?
Real Estate 102
Marketing, Marketing, Marketing
HOW DID WE DO IT?
Big Idea #2
HOW DID WE DO IT?
Sarah Susanka and Not So Big
HOW DID WE DO IT?
Sarah Susanka and Not So Big
What’s the attraction of big?
HOW DID WE DO IT?
Sarah Susanka and Not So Big
The feeling of “Home”
has almost nothing to do with size
It’s a quality, not a quantity!
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?
Selling Approach
HOW DID WE DO IT?
Selling Approach
HOW DID WE DO IT?
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?
Marketing, Marketing, Marketing
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
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
HOW DID WE DO IT?
Marketing, Marketing, Marketing
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?