Chicago Developers Transform Historic Solo Cup Factory into 227-Unit Townhome Community

A landmark industrial site in Highland Park, Illinois, is poised for a major residential transformation. Chicago-based Habitat has formed a joint venture with M/I Homes of Chicago to redevelop the former Solo Cup Company manufacturing facility into The Bowery of Highland Park, a 227-unit townhome community.

According to Connect CRE, the partnership is set to close on the 1700 Old Deerfield Road property this spring, with construction anticipated to commence in the second half of 2024. The project represents one of the largest residential redevelopments in the North Shore suburb in recent years.

Key Details

The development team consists of Habitat, a seasoned Chicago developer with a portfolio spanning residential and mixed-use projects, alongside M/I Homes, a publicly traded homebuilder operating in the Chicago market. Together, they plan to transform the former Solo Cup manufacturing site into 227 townhomes, introducing a substantial supply of for-sale housing to Highland Park.

The property, located at 1700 Old Deerfield Road, has sat vacant since Solo Cup ceased operations. The site's industrial zoning will require municipal approvals for residential redevelopment, though specific entitlement timelines have not been publicly disclosed. Financial terms of the joint venture and land acquisition have not been released.

The project's name, The Bowery of Highland Park, suggests a modern, lifestyle-oriented branding approach that could appeal to buyers seeking walkability and community amenities in the affluent North Shore enclave.

Market Context

The redevelopment signals continued confidence in Chicago's suburban residential market, particularly in high-demand North Shore communities. Highland Park, located approximately 25 miles north of downtown Chicago, has historically maintained strong property values due to its lakefront location, reputable school districts, and Metra commuter rail access.

For CRE professionals, the project illustrates the growing trend of industrial-to-residential conversions in suburban markets. As manufacturing footprints shrink across the Midwest, former factory sites present opportunities for housing developers to acquire well-located land at values potentially below typical residential assemblage costs.

The 227-unit scale is noteworthy for Highland Park, where new construction has been relatively limited compared to neighboring communities. The introduction of townhomes—a product type that bridges the gap between single-family homes and condominiums—could attract a diverse buyer pool, including downsizing empty nesters and young professionals seeking homeownership in a premium suburb.

The partnership between an established developer and a national homebuilder also reflects a broader trend of collaboration in suburban residential development. Joint ventures allow partners to share risk, leverage complementary expertise, and access capital more efficiently in a challenging financing environment marked by elevated interest rates and construction costs.

For the North Shore submarket, The Bowery of Highland Park could serve as a bellwether for future adaptive reuse projects, demonstrating whether former industrial sites can successfully transition to residential use in communities with strong regulatory oversight and active citizen participation in development decisions.