Parcel Assembly for Multifamily Development
Northlake
Cook County
Northlake revitalized underused and neglected properties by assembling land, leveraging public financing, and partnering with nonprofit and private developers to create nearly 200 new housing units for low-income seniors, people with disabilities, and market-rate condominiums.
Background
Over the past two decades, the City of Northlake has pursued a strategic approach to revitalizing underutilized and aging parts of its housing and commercial stock. As a built-out community with limited open space, Northlake focused on assembling land parcel-by-parcel, especially in areas marked by neglect or shifting economic use, such as retail corridors impacted by e-commerce. These projects emerged from a blend of opportunity, necessity, and proactive leadership of the mayor and City council, as well as a willingness to take calculated risks to meet local housing needs and improve community aesthetics and tax base.
How It Worked
Northlake has undertaken several projects of parcel assembly and redevelopment:
Donald Kent Residences
This 72-unit Catholic Charities development, completed in 2007, was made possible by assembling and clearing several parcels of deteriorated apartment buildings. The City leased the land to Catholic Charities for $1 per year for 99 years, significantly reducing development costs and allowing the land value to be used as a donation credit. Parcel acquisition was funded through bonds backed by a TIF district. The City secured approval from the U.S. Department of Housing and Urban Development for a preference giving Northlake residents priority access to units—justified by the use of public funding to acquire the property and lease it long-term at $1 per year.
Wolf Ridge Condominiums
In the early 2000s, the City assembled 15 single-family homes in disrepair to develop the 60-unit Wolf Ridge condominium project. After private developers sought significant concessions, the City chose to act as its own developer and hired a design/build firm. Twenty units were pre-sold before construction began, but the 2008 housing crash stalled sales. The City completed the building, closed on the initial units, and used creative marketing strategies to maintain momentum – placing lamps and timers in vacant units and decorating balconies during the holidays to create a more occupied, vibrant appearance.
To sell the remaining units, the City introduced seller financing and partnered with Crown Mortgage to originate and service loans. At one point, the City held more than 30 mortgages. Rather than sell them, officials retained the loans to generate long-term returns. Interest payments fund a dedicated Park Improvement Fund — now exceeding $300,000 despite ongoing withdrawals — while principal payments support the City’s 21st Century Fund for future development initiatives. Approximately nine mortgages remain active.
The project ultimately stabilized the area, increased property tax revenue, and expanded housing options for downsizing residents. Units now sell quickly, and the City retains one unit to stay engaged with condominium operations. City leaders view the investment as a long-term community enhancement, comparable to developing other public amenities.
Goal
To revitalize neglected or underused areas while addressing unmet housing needs.
Target
Acquiring vacant or underperforming parcels to spur redevelopment of housing for seniors and individuals with disabilities.
Financing
Land acquisition was funded through TIF bonds or general funds. Land was leased to developers at $1 for 75 or 99 years. Other than the Wolf Ridge Condominiums, development was financed through nonprofit housing developers using federal low-income housing tax credits.
Success
Four major projects were completed: Donald Kent Residences (72 units), Wolf Ridge Condominiums (60 units), Wisdom Village II (50 units), and Trinity Park Vista (16 units), totaling nearly 200 new housing units.
Lessons Learned
Investments in housing yield long-term community value through improved neighborhoods, expanded housing choices, and increased tax revenue.
Wisdom Village II
This 50-unit affordable senior rental development was built on land formerly occupied by underperforming commercial buildings. The City began assembling the parcels in 2015 using general funds, recognizing that retail was unlikely to return to the location in part due to the rise of e-commerce. The City approached the developer of the original Wisdom Village to build a second phase and ultimately leased the land to the developer for $1 over 99 years. While federal rules prevented a full local preference, 16 of the 50 units were prioritized for Northlake residents, helping local leaders justify the public investment.
Trinity Park Vista
Built on the site of a house destroyed by fire, this 16-unit supportive housing project for residents with developmental disabilities was developed in partnership with a nonprofit developer introduced to the City through the Metropolitan Mayors Caucus. The City acquired the parcel using general funds and leased it to the developer for $1 over 99 years. Local residents are given priority placement. The development was completed in 2019.
Public Involvement
Community buy-in to the City’s active role was important. Because residents saw that redevelopments were addressing issues of blight, improving the community’s housing stock, and expanding the local taxbase, the City was able to move forward with each project’s acquisition and development. The success of each development helped the City earn trust from the public for future initiatives.
Contact Information
City of Northlake, www.northlakecity.com
This case study was last updated in February 2026.
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