Hines Breaks Ground On 306-Unit Chicagoland Project
The development landed a $66.1 million construction loan.
Hines has broken ground on a 306-unit project in Naperville, Ill., with funding partially provided by its U.S. Direct Investments program, a financial tool that connects high-net-worth clients with one-off development opportunities.
Additionally, Hines secured a $66.1 million construction loan from PNC Bank, according to public records.
The project rises at 1200 Diehl Road, on the site of a former 100,000-square-foot office property, which Hines demolished. Downtown Chicago is about 30 miles east, while thoroughfares such as Interstate 88 and U.S. Route 34, as well as more than 800,000 square feet of retail space, can be found within walking distance.
Marking Naperville’s first LEED-certified multifamily project, the development features studio and one- to three-bedroom layouts, in addition to 15,000 square feet of retail space and 652 parking spaces.
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The amenity package at the five-story project calls for coworking spaces, a swimming pool, a gym, a clubroom and a golf simulator, among others.
Hines has had a busy second half of 2025, kicking off multiple projects. In October, it partnered with Affinius Capital, Bank OZK, Related Fund Management and Heitman to break ground on the first phase of a 721-unit project in San Diego.
Three months before that, it teamed up with Sumitomo Forestry and Chuo-Nittochi Co. to buy land for the development of a 365-unit property in Dumfries, Va., a project part of the 2,000-acre Potomac Shores master-planned community.
Rents go up, starts outpace completions
Although Chicagoland’s occupancy rate eased 40 basis points year-over-year to 95.9 percent in September, the market’s advertised asking rents went up 3.9 percent in October, compared to the same period of last year, according to a recent Yardi Matrix report.
The metro had more than 10,800 units underway as of November, according to Yardi Matrix data. Completions clocked in at nearly 3,900 units during the first 10 months, accounting for roughly 1.5 percent of total stock. Meanwhile, developers kicked off construction on more than 4,200 units during the same period.
One of the new multifamily construction projects that started this year was The View at Rock Run. This 573-unit development rises on more than 30 acres in Joliet, Ill., being built by a partnership between PREMIER Design + Build Group and Cullinan Properties.
