Land annexation a go for $6M Pappas 61-unit rental complex in DeKalb

DeKALB – A land annexation was greenlit by the City of DeKalb Monday to make way for a new 61-unit rental complex by Pappas Development, which DeKalb Mayor Cohen Barnes heralded as a reinvestment in the community.

The DeKalb City Council voted, 6-0, Monday to approve the annexation and zoning changes for the proposed residential complex brought forth by DeKalb-based Pappas Development, which will be called “Arista Residences.” Sixth Ward Alderman Mike Verbic and Seventh Ward Alderman Tony Faivre were absent from the meeting. The plan will annex a 1.8-acre site at the northwest corner of Barber Greene and County Farm Roads into the city so the developer can build a four-story building with 61 single bedroom units.

Barnes gave credit to John Pappas, who raised his family in DeKalb and will soon count Arista as one of several similar residential complexes in the area.

“You, time and time again, figure out a way to reinvest your money in this community and you continue to grow the impact that you make,” Barnes said to John Pappas. “And I think a way to put it would be that you’re a local boy who continues to invest in our community.”

First Ward Alderwoman Carolyn Morris said she thinks the development is an efficient plan for the vacant space.

“I’m thrilled to see this proposal and thrilled to see this piece of land put to new and exciting use that very likely will revitalize the space and bring new energy there and bring new traffic there,” Morris said. “I think it’s a really positive idea.”

[ Pappas wants ‘Ritz-Carlton feel’ for newly proposed 61-unit residential complex in DeKalb ]

The building will sit at 1383 Barber Greene Road near the corner of Sycamore Road, close to shopping centers which house Buffalo Wild Wings, Panera and ALDI, among others.

Foti Pappas, vice president of Pappas Development and son of John Pappas, told the city’s Planning and Zoning Commission last week he wanted the project to have a “Ritz-Carlton, five star hotel feel.” He said Pappas’ fully-furnished, one-bedroom units bring demand for a variety of leases, from 12-month to three years, especially among retirees.

“It’s changing the game completely,” Pappas said.

It’s one of several similar residential rental complexes Pappas Development has under its swiftly-growing portfolio. The developer said he believes his company has identified a niche in DeKalb’s housing market: move-in ready, modern and furnished units that he says he rents primarily to working people who aren’t seeking homeownership.

The developer’s most recent project, Isaac Executive Suites, 2675 Sycamore Road, was approved by the city council in June 2020, with 59 one-bedroom units and shorter leases – about 9 months – for traveling professionals. The suites opened for rent in July 2021.

Pappas has said the rent roll for Isaac Executive Suites was completely filled within the first 10 days he received the certificate of residency for the building.

‘We’re ready to move’

City officials said Monday that Arista Residences, down the street from Issac and especially close to shopping and restaurants, could entice those who work in surrounding facilities to want to live closer.

“There’s a range of users – there’s all age groups,” said City Manager Bill Nicklas. “There are people who are employed and people who retired. There are people who are working in professional positions at the hospital or for [Northern Illinois University] at various new developments around town.”

Nicklas said the daily rent value for someone living in one of the units would end up being $45 per day.

“If you’re a professional looking to come in for five days, and during the weekend you’re looking to go home to another place ... then that’s a great opportunity,” Nicklas said.

Unlike some of Pappas’ recent projects such as Cornerstone DeKalb and Plaza DeKalb downtown, the latest proposal won’t feature any commercial space, according to development plans.

Pappas has said traveling doctors and nurses at Northwestern Medicine, along with major employers such as Ferrara Candy Company, Facebook and Amazon attract young professionals to the area who rent from him.

According to city documents, the units will be about 700-square-feet with an estimated monthly rent of $1,350. Amenities will include a hotel-style lobby, hospitality room, business center, maid service, full gym and electric vehicle charging stations.

According to the U.S. Department of Housing and Urban Development, the current fair market rent value for a one bedroom apartment in DeKalb County is $811 per month.

The parcel of land Pappas will annex was previously used for Buhr’s Landscaping and Lawn Care, which closed about two years ago, documents state. The land has been up for sale for 18 years, Nicklas said.

“It has been at least of casual interest to a number of commercial interests,” Nicklas said. “But there are some things arguing against it.”

Nicklas said a hurdle to annexation was the sanitary district. Pappas plans show the 16-foot sewer will be relocated to the annexed property.

There will be 92 parking spaces in the lot of the complex, and a sidewalk along Barber Green Road. According to DeKalb city code, each one-bedroom rental unit must have 1.5 parking spaces.

Arista Residences will be the sixth of its kind to be built by Pappas Development within the past three years.

Unlike several of Pappas’s former and ongoing development projects, the land for Arista Residences does not fall in a tax increment finance district.

Pappas said architectural work is part of the immediate next steps for the project. He said there has not been an official project plan submitted to the city yet and there has not been any set timeline as of now, though he doesn’t expect many obstacles going forward with the project.

“Our goal is to get moving as fast as possible, given city approvals,” Pappas said. “We’re ready to move.”