Fox Lake apartment project targets the “missing middle”
The first building foundations are expected to be poured this week for what Fox Lake officials say will be a transformative development to provide a much-needed housing option in town.
The Quarry Apartments is being built as a 154-unit, 11-building rental complex west of Route 12 and north of Big Hollow Road.
Apartments will be offered at market rate, but because of developer incentives rents will be lower than in other areas. According to village officials, the project will address the growing demand for “high-quality, attainable residential living,” in Lake County.
“We are all privately financed,” said Kevin Micheli, chief operating officer and president/principal of developer Sterling Hall Development and Charles Hall Construction. “This is 100% market rate.”
Fox Lake officials say the project is designed to meet the needs of the “missing middle” — individuals and families seeking quality housing that balances affordability with modern amenities.
The complex will feature one- and two-bedroom units, with estimated rents varying from $1,568 to $2,541 a month and a “blended average” of about $2.15 a square foot, Micheli said.
Charles Hall has done projects throughout the area, including Morris Station in Mundelein. The Quarry Apartments will be similar to that project, but rents will be lower, according to Micheli.
Micheli said his business partner had owned the property for 25 years and marketed it for commercial uses. However, the former quarry site has poor visibility from Route 12 and limited access.
Given those factors and its proximity to existing retailers, including Jewel Osco to the south, a market analysis showed a residential development would be the best use for the land.
“The market study showed study showed us there is an extremely high demand, Micheli said. The study showed a need for 1,500 to 2,100 units of this type over the next five to seven years.
The property is in a village-designated special financing district and was incorporated into the Upper Illinois River Development Authority enterprise zone. Both provide incentives to encourage private investment.
“Those are the two things that help developers build in communities and make this a very attractive product,” Micheli said.
“Lake County overall is undersupplied,” he added, “and a lot of municipalities are getting very aggressive help out developers.”
The first units are expected to be ready for occupancy in August 2026.
“We are thrilled to welcome this significant investment and development into our community, as it represents an important step forward in Fox Lake’s continued growth and revitalization,” said Jodi Luka, the village’s community and economic development director.