Northbrook Terminates Purchase Agreement At Former Grainger Site

NORTHBROOK, IL — Citing the developer of the former Grainger site failing to meet the latest deadline for purchase of the property at 1657 Shermer Road, the Village of Northbrook announced it is terminating an agreement with Quarterra Multifamily Company. The 10.3-acre site was acquired by the Village in 2018.

W.W. Grainger, Inc., an industrial supply company, ceased operations in Northbrook, Patch reported in 2017. The Village purchased the property from W.W. Grainger the next year for $8 million.

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Originally, the site was targeted for a relocation of the Metra train station, but that idea was eventually scrapped.

The Village Board started the process of placing the site up for sale in fall 2021. A listing agreement was approved with real estate brokers Cushman and Wakefield in September of that year.

In May 2022, Quarterra Multifamily Company entered into agreement with the Village to purchase the property for $10.5 million. The plan was to build a five-story, mixed-use development on about 8.8 acres consisting of 335 luxury apartment homes, five of which would be set aside as affordable housing in accordance with the Village's inclusionary housing ordinance, amenities and a parking structure with approximately 500 stalls.

According to the Village, the development was also to include an approximately 6,500 square foot retail parcel along Shermer Road to be developed for retail uses, such as a restaurant and off street parking for approximately 60 cars.

Officials said the termination of the agreement occurred as the developer failed to meet the latest deadline for purchase of the property "amid rising costs and challenges in securing capital for large-scale developments, a trend observed nationwide."