- Lexington is targeting buyers with a price range of $300,000 to $400,000
- The builder's townhomes will be constructed on sites typically reserved for multifamily development.
- Lexington plans to deliver 125 homes this year.
One Chicago homebuilder has shifted its focus to constructing for-sale townhomes on infill sites.
This spring, Lexington Homes will break ground on three communities that will each feature 20 or more townhomes.
Located in Des Plaines, Park Ridge and Kenwood, these projects will rest on infill parcels typically reserved for multifamily projects.
According to Jeff Benach, co-principal of Lexington, the builder plans to construct more three-story townhomes this year, which should attract primarily “younger” buyers. A number of townhomes previously built by the company have been two stories, which generally appeal to empty nesters.
Townhomes built in neighboring Des Plaines and Park Ridge will start in the low $300,000 to $350,000 range.
These markets’ resale sectors should represent a challenge for new product like Lexington’s. According to Crain’s Chicago Business, during the first two months of this year 72 existing homes sold in Park Ridge, which represented a 28 percent year-over-year rise. At the same time, the number of new listings rose by 36 percent, pushing inventory to 214 homes.
The builder’s 20-home Kenwood community will be the stand out of the three townhome projects, as each residence will feature a rooftop deck, fenced in front yard and balcony off the kitchen.
“To have all three (outdoor features) is pretty rare,” Benach said.
During pre-construction the builder expects to sell roughly half of its townhomes at each project. The builder will utilize a central townhome model at an existing complex to showcase the layout and size of the to-be-delivered residences.
Still building single-family product
While shifting more of its focus on townhomes, Lexington will continue to build single-family homes in the suburbs.
This spring the builder will start the construct of 15 homes in Arlington Heights. The homes will start in the low to mid-$700,000 range.
Overall Lexington expects to deliver 120 homes this year. Last year the builder delivered 110 homes.