An illustration of a 3,400 square foot house in the Lexington Homes development (from ChicagoRealEstateDaily.com).
By Natalie Terchek
Lexington Homes is transitioning into custom building, planning 26 new houses in the northwest suburbs as the homebuilding market slowly begins to improve.
ChicagoRealEstateDaily.com reports that the Chicago-based developer is launching it custom division with Woodleaf at the Sanctuary Club, a subdivision near Kemper Lakes Golf Course in Kildeer, north of Half Day Road.
Lexington Homes Development Encouraging for Homebuilders
Jeff Benach, co-principal of Lexington Homes, believes this is an encouraging sign for developers as the homebuilding business rebounds from a six-year slump. He has broken ground on two homes in the development, hoping the custom options and Stevenson High School district will attract young families and move-up buyers.
“We need to run a 2k before we can run a marathon,” he said.
Benach is not the only one who thinks this is an encouraging sign. According to Schaumburg-based consulting firm, Tracy Cross & Associates, sales of new homes in the suburbs rose 22 percent at a seasonally adjusted rate in the third quarter.
“I don’t think we’re seeing much more traffic than we were a year ago,” Benach said. “The difference is the buyers are real buyers now.”
In the past, Lexington Homes focused more on selling homes it designs, rather than letting buyers draw up their own plans. They are shifting toward custom designing, opening a 15-row house community in northwest suburban Prospect Heights and marketing developments in Bridgeport on Chicago’s South Side.
Peter Di Iorio of Dior Builders Inc. says the strong school district and golf course views make this project seem promising. Di Iorio signed a contract to purchase the site from Benach, but pulled out of the deal when the market plummeted.
“The last five years there’s been so little built, the pent-up demand is there,” he said. “Twenty-six sites is not going to flood the market.”
The Woodleaf homes will start near $800,000. The lots range from half to three-fourths of an acre and come with custom-designed landscaping, appliances, full basements and three or four car garages. Both of Benach’s homes on the site include four bedrooms on the second level. One home will measure 3,600 square feet and the other will be 4,400 square feet of finished space.