Great Recession-era townhome site in Johnsburg coming back to life

Demand for housing in the northwest suburbs is driving the revival of at least one neighborhood development site that dates back to the Great Recession, its listing agent said.

Remington Grove, just off Route 31, is a planned development in Johnsburg that will include 77 new townhome units along Monica Lane, agent Greg Klemstein said. A ribbon-cutting for the first building, which will include the model unit and three of the five units are currently under contract, was held Saturday.

The new tenants are expected to move in this month, Klemstein said.

The project was first pitched in 2005, Klemstein said. The site, formerly farmland, was annexed into Johnsburg and three phases of development were planned.

Roughly half of the original 71 single-family homes were built before the recession hit, as well as one townhome building that was never sold. KLM Builders is now building the rest of those planned single-family homes, Klemstein said.

Heartland Real Estate Partners is managing the townhome project’s construction, and GWF Johnsburg LLC will be a partner for the one property already built but not sold, Klemstein said. Once the project is complete, it will include 83 townhomes.

Inventory for new housing is very low in and around Johnsburg, said Klemstein, who also is a village trustee and chairs the board’s finance committee.

“We want to see more building,” Klemstein said. “There’s a lack of supply in the marketplace for affordable housing. We hope people will come to move to Johnsburg, have a nice new home off the Route 31 corridor. Hopefully, that will attract even more families to the area.”

Village President Ed Hettermann, who attended the ribbon cutting, said the project provides “welcomed housing product” for Johnsburg.

“I am excited that the development is proceeding and look forward to working with Heartland Real Estate Partners through its progression,” Hettermann said.

Heartland has requested the building permits for the next four buildings to be constructed. Klemstein said the developers hope to pour the foundations for those as soon as the weather improves later in March.

The ranch-style homes are popular with older residents looking to downsize from bigger houses, Klemstein said. The townhomes and their lower price range could also appeal to millennials looking to own their first home.

The lowest price point for the homes in Remington Grove will start at $260,000, some of the largest units could cost $40,000 to 50,000 more. Ideally, all three phases of Remington Grove will be completed within 12 to 18 months, Klemstein said.

Some local developers are worried that COVID-19 and supply chain issues could cause a delay in that timeline, Klemstein said, citing garage doors as an item that could be delayed by up to six months.

Klemstein described the area around McHenry, as a “severe sellers’ market,” with under a months’ worth of inventory, whereas in a “balanced market” that figure would be closer to six months.

“A lot of people are moving out of the city because they can work from home now,” Klemstein said. “People are coming back.”

Currently, the population of Johnsburg is just over 6,300 people, according to the 2020 U.S. Census. The Remington Grove subdivision could bring in about 300 to 350 new residents.

“We’d like to see more sidewalks, more walkable communities in Johnsburg,” Klemstein said. “We want people to enjoy the waterfront and the downtown area.”