The Apartment Home development opportunity at Heritage Harbor Ottawa is ideally situated at the Harbor Town entrance to Heritage Harbor Ottawa’s resort community. Located on the Illinois River near the intersection of the Fox River, approximately 45 minutes from Naperville and 90 minutes from Chicago, Heritage Harbor Ottawa is recognized as one of the Midwest’s premier waterfront resort communities. In the summer of 2014, “Time Out Chicago” named Heritage Harbor one of the “Top Chicago Family Summer Getaways”.” This project has strong market feasibility and strong community support. Heritage Harbor Apartments could be constructed as a singular project or in three phases totaling 120–150 units on a 6-acre parcel located within the northeast quadrant of the resort near the marina district. The developer-commissioned market study suggests a product mix with 50% studio and 1-BR units and 50% 2-BR units. Units should range in size from 560 to 1,150 square feet. Rents suggested in the market study should range from $860 to $1,250 per month (or $1.23/square foot average). Amenities should include balconies, in-unit washer/dryers, stainless steel appliances, Wi-Fi, outdoor pool and sundeck.
Ottawa, Illinois, is located 90 miles southwest of Chicago on the Illinois River and houses the 13-county Appellate Court, and supports a vibrant downtown community centered around Washington Park—the site of the first historic Lincoln-Douglas debate. Abundant retail and consumer services such as Ottawa Square Mall, Walmart, Sears, Kroger’, local restaurants, auto dealers and hotels are located nearby at the I-80/IL-23 interchange. St. Elizabeth Medical Center (part of the fastest growing hospital system in central Illinois) is one-half mile north of the resort. Clover Technologies, HR Imaging, and Ottawa Dental Lab have their headquarters in Ottawa, creating a very stable employment base. Several Midwest distribution centers (Kohl’s and PetSmart) and a branch of Illinois Valley Community College are also located in Ottawa. The majority of the units would have beautiful views of the Illinois River. The target market would be two-fold: local demand will be the primary source for occupancy, along with empty nesters and active adults seeking the recreational lifestyle the resort and region have to offer.
The Heritage Harbor team is positioned to perform rental management for this project if needed. As full-time resort managers, Heritage Harbor would also be capable of performing landscaping and site maintenance. Since the resort offers such a diverse market appeal, beyond conventional rental uses, the owner could also elect to allocate a number of units to executive rental, seasonal rental, and targeted resort usage. This could provide significant enhancements to the rental rate and financial performance. Enterprise Zone sales tax abatement is available for this project, along with all other commercial development activities at Heritage Harbor.
“Given the population, income levels, and assumption that approximately 28% of the eligible households choose to rent, the Ottawa market demonstrates pent-up demand of over 1250 apartments.” The current local apartment inventory is very outdated but still maintains high occupancy rates. Heritage Harbor apartments will be the first new construction project in Ottawa since 1979 to meet the demand of this underserved market. Numerous resort homeowners are already offering executive rental to meet strong local demand. The local Chamber of Commerce continues to seek additional units to meet the upscale rental market demand that is currently unfulfilled in the Ottawa marketplace. For more demographics