Arlington Heights Advances Luxury Apartments
The suburb of Arlington Heights is advancing several luxury apartment projects designed to attract upper-income renters. This move is part of a broader trend of Chicago-area suburbs developing high-end rental options to compete for affluent tenants. These developments represent growing competition for the city's core luxury market.
- One of the key projects is Arlington 425, a $150 million mixed-use development that will add 319 units in two residential buildings at the southwest corner of Campbell Street and Highland Avenue. After delays due to financing and design changes, the developer received a six-month extension in April 2024 to secure permits. - Another major development, the Arlington Gateway Project, is under construction at the southeast corner of Algonquin and Arlington Heights Roads and will feature an eight-story building with 301 luxury rental units and 24,900 square feet of ground-floor commercial space. This project is part of a larger 16-acre master plan and is expected to be completed in 2026. - Additional projects contributing to the suburban luxury market include the proposed Mylo Arlington Heights, a six-story, 135-unit building at 116-120 W. Eastman St., and the proposed 5 N. Douglas Apartments, a five-story building with 64 luxury units. - This development surge is part of a long-term strategy outlined in the Arlington Heights Downtown Master Plan, which aims to foster a vibrant business, cultural, and entertainment hub. The village is actively encouraging public-private partnerships and the addition of national retailers and restaurants to enhance the downtown area. - The target market for these new suburban units includes both young professionals and local empty-nesters or downsizers seeking a walkable, urban-style environment without moving to the city core. - The trend extends beyond Arlington Heights, with suburban Chicago multifamily sales volume increasing by 40.4% in the first three quarters of 2025 compared to the previous year, attracting both local and out-of-state investors. - These suburban developments are increasingly offering amenities that compete directly with downtown luxury buildings, such as walkable neighborhoods, proximity to public transit, on-site retail, and high-end fitness centers. - The potential, though currently stalled, relocation of the Chicago Bears to a new stadium on the former Arlington Park racetrack site has been a factor in development timelines and adds a layer of uncertainty and potential future impact on the area's rental market.
