"We will close on that land," Sweet told the firm, adding plans are to build a five-story elevator building there. However, Sweet declined to give additional specifics.

The development will be one of just two projects AMLI Residential is likely to embark on this year, says Sweet, somewhat disappointed by the lack of additional opportunities. In addition to the Lake County property, the company hopes to start work on a Downtown Austin, TX site later this year, he adds.

Meanwhile, Sweet repeated company goals that it will be a buyer of up to $300 million worth of younger apartment complexes this year. Markets that have seen some distress, such as Atlanta, Austin and Denver, are likely targets, Sweet indicates.

The plans for building here come as AMLI's suburban Chicago portfolio has slumped along with the rest of the multifamily rental market, particularly in the higher-rent districts the REIT chooses to locate. Exceptions to AMLI's occupancy slump have been AMLI at St. Charles in that far west suburb, which saw an uptick in occupancy by three points to 87% in the fourth quarter, as well as AMLI at Osprey Lake.

Located in nearby north suburban Gurnee, the 483-unit Osprey Lake complex was bought by AMLI a year ago for $52 million. Since the purchase, occupancy has increased each quarter, from 87% to 96% at the end of 2001, the highest in the Chicago portfolio.

Construction continues in southwest suburban Woodridge on an $82-million, 520-unit joint venture development with Electrical Benefit Fund.