ALGONQUIN – Interior construction of Riverside Plaza is expected to begin later this year, as the developer of the property has secured the necessary financing, the village said in a news release.
Securing the roughly $11 million in financing gives developer John Breugelmans an extended deadline to start interior work on 63 luxury apartments on the property and 9,600 square feet of retail space at 1 N. Main St., Algonquin.
His original deadline to start work was Oct. 16. If he had not secured the necessary financing by that deadline, the village stipulated that the development would have reverted back to the original plan of 54 luxury condominiums.
With the financing in place, Breugelmans now has until Jan. 16 to submit revised plans for the building, obtain building permits and get interior construction started. The building is scheduled to be ready to be occupied by the summer of next year.
“There have been many long hours dedicated to this project by staff to work with Mr. Breugelmans to ensure this development fits the community vision for downtown amidst a difficult lending environment,” Village President John Schmitt said in a news release. “Coming out of the Great Recession with a significant investment such as Riverside Plaza is great for downtown and is great for Algonquin.”
About a year ago, the village allowed Breugelmans to change the development to rental apartments from condos, with an agreement that the units eventually would switch back to owner-occupied dwellings.
Breugelmans was unable to get financing to build luxury condos, which could take years to sell.
With financing to build rental units, Breugelmans has said he plans to build 750-square-foot to 1,430-square-foot luxury apartments that would rent for $1,100 to $1,800 a month.
Before Breugelmans and Lakeland Asset Management took over the property, the building stood unfinished for two years. The exterior of Riverside Plaza has since been completed.
Completing the interior work is expected to increase the number of residents in the downtown area, who are expected to support existing businesses and help attract new dining, retail and service establishments, the village said.
“By next year, there will have been over $81 million invested in infrastructure and private development in downtown Algonquin since the beginning of the Great Recession,” Schmitt said.