Huge, Mostly Unbuilt Springbank Subdivision Sold for Just $12.5 Million

One of ’s largest unfinished subdivisions, stuck in foreclosure limbo with only 98 of 1,880 homes built, has a new owner.

Avanti Properties Group, partnering with Ocean Atlantic Management, has closed on a deal to purchase the 950-acre Springbank development, located on Drauden Road north of Caton Farm Road, from MAF Developments Inc.

Avanti had announced in July, and requested Plainfield Village Board approval to amend the development’s original annexation agreement, site plan and zoning so it could increase the number of town houses and add an apartment complex and a 20-acre commercial site. When trustees balked, the but stayed mum on whether the purchase would proceed.

Village Planner Michael Garrigan called the sale “very positive” news for Plainfield, especially given that the new owner has agreed to complete the final road work in the first two phases of the development – and possibly the third – by year’s end. The expense is “in the six figures,” Garrigan said.

The 98 families in those three sections have been living with temporary construction roads, which is not unusual when a developer has plans to build another 594 houses. Those houses never materialized, however, before MAF – like many developers all over the country – got caught in the housing market collapse.

In total, Springbank has nine phases, calling for 1,599 single-family houses and 281 town houses. It also has an already-built aquatic center used by subdivision residents and the public through a membership fee.  

Because the property had gone into foreclosure and was technically owned by PNC Bank, selling the property in portions to different owners was prohibited. The emergence of a developer willing to buy the entire site, particularly at a time when the housing market has yet to bounce back, is a boon for the village.

“I think it’s a real positive for the community that we have a developer that’s committed to making the project work,” Garrigan said.

That said, Garrigan warned that residents shouldn’t expect to see houses popping up in the immediate future. It will take years for it to be built out given the few new houses being built anywhere, he said. Only 10 single-family house building permits have been issued this year, which is about the same as last year, he said.

Avanti and Ocean Atlantic can afford to wait given that their investment – $12.5 million for the entire site, according the Crain’s Chicago Business – is pittance compared to what would have been paid only a few years ago. Garrigan said lots then were selling for $110,000 each.

Avanti Principal Marvin Shapiro told Crain’s that he thinks Plainfield will be a good bet when the market for new homes returns.  

“We believe that Plainfield is a high-quality, good growth area for the Chicago suburbs,” he said.

The housing prices will likely be in the $300,000 to $350,000 range, Ocean Atlantic CEO Michael Ferraguto told Crain’s, which is less than many of the custom houses already been built in Springbank, Garrigan said. The Springbank Web site states that houses range from $350,000 to $850,000, although it’s not clear if that’s been changed since the sale.

In addition to Springbank, Avanti has also purchased the Grande Reserve subdivision in Yorkville for $10.8 million.