C
ontinental Properties, led by James Schloemer, has taken a bold step in securing a $54 million loan from The Bank of Oklahoma to develop a 254-unit apartment community in Deerfield, a northern suburb of Chicago. Despite high interest rates and construction costs, the project's potential rewards make it an attractive bet. The complex will be built on a 10-acre property within the Deerbrook Shopping Center, offering amenities like a pool, fitness center, dog park, and pickleball court.

    The apartments will range from studios to three-bedroom units, with 25 set aside as affordable housing. This meets the Village of Deerfield's requirement that projects of this size reserve 10% of units for affordability, with half priced for those making 80% or less of the area median income (AMI) and the other half for those at 100% AMI.

    Rents for market-rate units will range from $1,550 to $3,200 per month. Construction is expected to be completed by April 2026. Continental's confidence in the project is fueled by the suburban Chicago multifamily sales outperforming the city, with recent analysis showing that 17 of 27 sales over $10 million sold at a markup from their last sale price.

    The demand for suburban apartments has been strong nationally, with Suburban Chicago named as one of the most in-demand markets for renters. Continental's recent acquisition of a Plainfield apartment complex and its listing of an existing McHenry property will provide valuable insights into market demand before the Deerfield project is complete.