After holding a 20-acre land parcel for more than 15 years, a private real estate investment group, led by land developer Jonathan Berger of Berger Asset Management along with the Village of Hawthorn Woods are announcing new and revised zoning/development plans to create Hawthorn Woods Town Center on a 20-acre site at the northeast quadrant of the Old McHenry Road and Midlothian Road intersection in Hawthorn Woods, Illinois.
The announcement comes following an extensive hold period and work with a handful of national and regional developers who tried to overcome a variety of challenges that ultimately stalled future development. A little over two years ago, however, Berger and his investors made the decision to work through those challenges to create a site that would be virtually shovel ready.
Among the remedies that enhance the viability of the site include significant rezoning and incentive actions. Originally, the zoning of the property, and others like it in Hawthorn Woods required 300-foot setbacks. Berger, however, ultimately was able to secure 30-foot setbacks which are typical in most retail properties. Additionally, the Village has indicated a willingness to incentivize grocery stores, including small store footprints, to help the project succeed.
One of the broader community issues that has impacted development in this general area of Hawthorn Woods has been the presence of the Elgin Joliet & Eastern Railroad that runs freight trains at grade level that intersects Old McHenry Road. The congestion creates delays that could reach 30 minutes causing some traffic to avoid the area completely.
When the decision was made to not pursue the extension of Rt. 53, the focus turned to eliminating the railroad crossing problem by engineering traffic to travel underneath the railroad tracks. Understanding the clarity and timing of that project was a milestone event for the Village and Berger’s investment group.
The rerouting of traffic under the railroad tracks, once it is complete, will also serve to more directly and conveniently connect the Hawthorn Woods Town Center site and the Village’s Community Park. According to the Hawthorn Woods website, the Community Park is the signature park of the Hawthorn Woods community. Located at the corner of Old McHenry and Quentin roads, this 30-acre park is a gathering space for special events, baseball tournaments, summer concerts, and more.
Berger originally acquired 40+ acres, in two distressed 20+-acre land parcels, in Hawthorn Woods in 2009-2010, intending to act as an opportunistic land developer. In late 2019, Berger sold the site on the south side of Old McHenry Road to K. Hovnanian, a Dallas-based residential developer. Seventy homes were built on that property, a significant departure from the typical density in Hawthorn Woods, well-known for custom homes that typically are built on parcels over one acre.
While assuming the position of a traditional land developer, Berger is not ruling out the potential of developing a few parcels on spec, developing a core and shell before securing tenants. Such a strategy could attract smaller retailers or medical office users, for example.
The land site is being subdivided into eight parcels ranging from 1.5 to 4.4 acres. When fully constructed and operational, Hawthorn Woods Town Center could generate as much as $1.0 million annually in tax revenue for Hawthorn Woods.
