Barrington-based developer Stoneleigh Construction will soon begin construction on a hotel conversion project in Arlington Heights. Stoneleigh has partnered with Prime Group Inc. in their bid to convert a shuttered Sheraton hotel into 214 new apartments.
Stoneleigh’s project is consistent with current market trends, as developers continuously look for opportunities to add rental units to the marketplace. Stoneleigh is in the phase of securing $30 million construction loan for the $46 million project and, once construction begins, this will represent the first Chicago-area development for the company.
During the hotel downturn of 2009, the Sheraton Chicago Northwest and adjoining CoCo Key Water Park fell victim to the economy and closed their doors. The property was purchased in June of 2011 and, despite a rush of competitors saturating the market with rental units, this project is unique to other suburban rental projects.
One of the biggest hurdles for Stoneleigh is to change the look and feel of the building so that residents don’t have the feeling of living in a converted hotel. However, this project has the advantage of being the first new residential building in Arlington Heights in a long time and this building will be able to offer high end amenities that renters desire. The 14-story building will offer a 10,000-13,000 square-foot health club, a 5,000-6,000 square foot restaurant and a rooftop deck.
The property is zoned for 670 units and the company can add another 456 apartments just east of the existing building. The group plans to reopen the water park and will likely add a 160-room Four Points by Sheraton hotel next door.
Stoneleigh hopes to finalize the loan on February 1st and immediately begin internal demolition with move-ins beginning late 2013. While Stoneleigh has amassed a portfolio of over 3,000 apartments across the country the company doesn’t own any apartments in Chicago.