Chicago Suburban Malls Transform Into Dense Mixed-Use Residential Hubs
Developers are converting aging shopping centers in the Chicago suburbs into walkable districts featuring high-density housing and urban amenities. According to Bisnow, firms such as Focus, Centennial, and The Lynmark Group are spearheading projects that integrate hundreds of apartment units directly into retail environments to meet the rising demand for nightlife and entertainment access outside the city.
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Context from Industry Pulse
The trend of mall densification in Chicago's northern suburbs highlights a shift in suburban land use from purely commercial to integrated residential hubs. As Bisnow reporting indicates, firms are navigating 10-year development timelines to reposition assets that have anchored communities for half a century. While some residents prioritize the active, urban feel of living directly at a mall like Hawthorn or Old Orchard, others seek adjacent housing that provides access via walking paths and branded transit options. This surge in construction is a direct response to a local housing shortage, forcing developers to balance the needs of new residents with the operational requirements of existing retail tenants.
Real estate developers are increasingly focused on bringing urban density to the Chicago suburbs by transforming former mall sites into walkable, mixed-use neighborhoods. According to Bisnow, these projects aim to address a significant lack of housing product in the region while offering residents proximity to shopping, restaurants, and entertainment. The shift toward higher density reflects a broader trend of mirroring the walkable nature of the city within suburban pockets.
In Bloomingdale, The Lynmark Group is developing a 302-unit apartment building at the site of the former Stratford Square Mall. This 110 million dollar project is part of a larger plan to turn the shopping center into a mixed-use district. Company leadership noted that incorporating open space and landscaping is essential during these redevelopments to ensure the new residential communities do not feel overly industrial or congested.
Other significant activity is concentrated around Hawthorn Mall and Old Orchard mall. As Bisnow reports, Focus is involved in two major projects, including a partnership with Centennial and Atlantic Development at Hawthorn Mall that will eventually total 593 apartment units. At Old Orchard, Focus is collaborating with URW on a phased development of approximately 400 units. Executing these projects requires careful planning to minimize disruptions for existing retail tenants who remain active during construction.
Residential options are also expanding in the areas immediately surrounding these retail hubs. Tucker Development recently delivered 245 multifamily units and 49 build-to-rent townhomes within walking distance of Old Orchard. By repurposing an 11-acre office site, the firm is providing complementary housing that offers residents the choice between living directly at the mall or in a nearby quiet neighborhood. These long-term redevelopments, some stretching up to a decade, continue to evolve as developers adjust to changing community demands and retail dynamics.
The Industry Pulse Bottom Line
Chicago’s suburban landscape is becoming more urbanized as developers leverage mall redevelopments to create walkable, high-density residential districts that offer city-like amenities to a growing market of suburban renters.