Downtown Redevelopments Quiet Naysayers

A transit-oriented location, excellent demographics and the political will to pay for an unpopular project were the ingredients that baked Deerfield's $100-million—the village spent $20 million on infrastructure, including a streetscape--Downtown redevelopment.

"If you don't have the commitment by the city itself, it can't happen," Michael Tobin, managing director for development of Northern Realty Group, tells GlobeSt.com. "These projects are too complicated to put together solely as a private developer."

The PrimeSource Center, named after one of the tenants, includes 45,000 sf of retail space averaging in the "mid- to upper $20s" per sf, says Tobin, whose company has handled the leasing of the project co-developed with Mesirow Stein Real Estate Inc. The 20,000 sf of office space is 100% leased, Tobin adds, while the 56 luxury multifamily rental units are full with renters paying $1,400 for one-bedroom units and $2,500 for a two-bedroom.

"It's very important that each of the individual uses have a clear identity and definable entrances," Tobin tells GlobeSt.com.

Both developments replaced tired storefronts and office space, not only resulting in more thriving businesses in the suburb's Downtown, Tobin says, but representing the first new development in nearly 50 years. Among the objections, Tobin admits, is increased traffic and lack of parking. However, the flip side is the retailers have traffic, and the previous abundance of parking spaces signaled an obvious lack of business for the local merchants.

Tobin sees a bright future for suburban Downtown redevelopment projects, which have continued to advance past the talking stages in several communities despite the economic slowdown. "A lot of people have grown to appreciate the benefits of Downtown communities," he says. "You just can't find land close to populated areas any more."