The long-vacant office site at 1200 E. Diehl Road is getting a full-on reboot: Hines has broken ground on a five-story, 306-unit mixed-use development that will bring new apartments and ground-floor retail to the corridor. The plan calls for roughly 15,000 square feet of retail, about 652 parking spaces, and homes ranging from studios to three-bedrooms. Demolition and site work are already underway.
Project features and finishes
Residents can expect a hospitality-style lobby and leasing office, a club room with a TV wall and fireplace, and a south-facing pool deck lined with cabanas and chaises. Apartments will feature quartz countertops, stainless-steel appliances, hardwood-style flooring, tile backsplashes, and roller window shades, with tech-enabled entry and thermostats. Amenities will also include a fitness center with outdoor connectivity, a sizable co-working lounge, and a golf simulator, according to a press release from Hines.
Financing
Industry reporting says the project is partially backed by Hines’ U.S. Direct Investments program and secured a $66.1 million construction loan from PNC Bank, per Multi-Housing News. That financing, along with developer equity and local approvals, moved the development into active construction.
Permits and site plan
City documents show the property was rezoned last year and approved as a planned unit development, with the City Council signing off on preliminary plats and conditional uses. The Planning and Zoning Commission recommended photometric deviations to allow the reuse of existing light poles and to cap lighting along the south property line at 0.5 footcandles, according to the City of Naperville. City records also note that school and park impact fees must be paid with cash in lieu before a building permit for vertical construction is issued. As part of the site improvements, the plan will connect to a nearby walking path and upgrade an adjacent detention meadow with new pavement and benches, per Hines.
What to watch
Keep an eye on the leasing pace, retail tenant announcements, and the construction timeline—no completion date was provided in the developer’s statement. The project is being marketed as Naperville’s first LEED-certified multifamily development and comes as Chicagoland rents and new construction remain elevated, according to Multi-Housing News. Neighborhood impacts—think traffic along Diehl Road and fresh foot traffic for nearby businesses—should come into focus as leases and retail deals start landing.
