In the past five years, Crystal Lake, a regional hub with 40,000 residents in Illinois’ McHenry County, has experienced significant residential and commercial growth. Now it is ready for the next chapter.

“Today, the city is focused on creating a well-rounded community where housing, retail, restaurants, recreation, arts and entertainment come together to enhance quality of life for residents while supporting continued economic investment,” Crystal Lake Mayor Haig Haleblian said.

Strong household incomes, a highly educated workforce and a stable residential base make up the local economy of Crystal Lake. Now, the city is capitalizing on these demographics, paired with excellent transportation access and an exceptional quality of life, to expand its community and provide businesses access to a large regional customer base close to Chicago, he said.   

Housing Growth Creates Homeownership Opportunities

Over the last half-decade, Crystal Lake’s strategy involved expanding its housing inventory by providing a balanced mix of owner-occupied and rental options that meet the needs of families, young professionals, seniors and empty nesters. 

Most recently, the city moved forward on a 175-home, owner-occupied single-family subdivision from Pulte Homes. 

Several notable developments are set to fuel additional residential growth. Waterside by Lennar is constructing 108 owner-occupied townhomes, while Woodlore Townes is nearing completion on 102 owner-occupied townhomes.

Crystal Lake is working on two projects with design-build firm Projades: Bard Estates, which will encompass 48 owner-occupied townhomes, and a development off Grant Street with 19 owner-occupied townhomes.

Rental Housing To Meet Residents’ Needs

The multifamily developments completed or approved in recent years include Enclave, The Springs, Redwood and Water's Edge.

Parkway Crossing, which will include 220 apartment units, is under construction.

The 551 Congress Street project, also by Projades, was originally approved in 2022 and was recently granted a planned unit development extension. The project will bring forth 93 apartment units near the Pingree Road Metra Station.

Sunshine Apartments, located at the corner of Congress Parkway and Station Drive, will have 24 market-rate senior apartment units, while Clover is set to provide 121 age-restricted independent living units.

“All together, these housing projects are more than just homes,” Haleblian said. “They represent Crystal Lake's strategic approach to growth by providing a customer base that supports local restaurants, retailers, entertainment venues, offices and healthcare providers.

Connecting Housing With Retail, Dining And Recreation

As Crystal Lake continues to grow, so does the demand for restaurants, retail, healthcare, entertainment and other commercial services.

Retailers and developers have been drawn to Crystal Lake's established commercial corridors, recreational amenities and business-friendly environment. Many cite the demographics, regional draw, quality of life and pro-business approach as key advantages, Haleblian said.

The city's commitment to efficient permitting and a collaborative development review process helps projects move forward more quickly and predictably.

Brent Hollenberg, owner of both Reclaimed Furniture and Batch, Crystal Lake’s new ice cream shop, emphasized the importance of the community and location.

“We’re grateful for the community’s support,” Hollenberg said. “It’s the community and the great location that make us successful.”

Many businesses across Crystal Lake have found that a strong customer base fueled by an engaged community creates an environment where businesses can thrive, Haleblian said.

Creating An Intentional, Walkable Community At Water’s Edge

Today, the city’s priority is not simply growth for growth’s sake. It’s ensuring that new neighborhoods are connected to the shopping, dining, recreation and gathering places that create an exceptional living experience, Haleblian said.

This intentional approach encourages walkability and helps Crystal Lake transform into a community where residents can live, work, play and connect close to home. Creating these connections means developers have an opportunity to build the projects that then become destinations that contribute to the whole community, he said.

One of the city's most significant redevelopment projects is Water's Edge, a vibrant 23-acre mixed-use destination that was once a shopping center. It is located along Northwest Highway in the heart of the commercial corridor overlooking the city’s Three Oaks Recreation Area.

The project is a substantial reinvestment in an underutilized property and reflects the city's commitment to thoughtful redevelopment. Developers were attracted to the site's unique setting, the area's strong demographics and the city's collaborative approach to development, Haleblian said.

“I’ve been doing this for 40 years, and I think in my career this has the opportunity to be one of the best developments I’ve ever done,” said Tim Grogan, managing principal of Heartland Real Estate Partners, the developer behind Water’s Edge.

Water’s Edge is not only a redevelopment of an existing commercial property but an opportunity to create a destination.

It has already welcomed retailers Cava, First Watch, America's Best, Menchie's and BBQ King, with additional restaurants and retailers planned for future phases.

The development also features a new public park, public art installations and direct access to the new 3-mile trail loop around the lake, creating a place where residents and visitors can dine, shop, exercise and gather in one connected location.

Water's Edge exemplifies Crystal Lake's vision of bringing together housing, recreation, commerce and public spaces to create lasting community value, Haleblian said.

Getting The Downtown Experience

New property owners, entrepreneurs and businesses are making investments in downtown Crystal Lake, the city’s historic and small business core.

Recent additions such as Distorted Sandwiches & Soda, Batch Ice Cream and Marigold Boutique have added new energy while complementing the district's established businesses.

The grand reopening of Depot Park at the downtown Metra station has further enhanced downtown as a central gathering space. It provides an inviting venue for concerts, festivals, community events and everyday recreation, attracting residents and visitors throughout the year.  

“These investments reflect the city's belief that successful communities are built not only through housing and commercial development but also through welcoming public spaces where people naturally come together,” Haleblian said.

The city remains focused on attracting new retail, restaurant and mixed-use development to several strategic commercial corridors and redevelopment sites. Areas surrounding Water's Edge and other key gateway locations offer excellent visibility, existing infrastructure and access to established customer bases, he said.

“The city's vision is clear,” Haleblian said. “We’re connecting the dots between neighborhoods, businesses, parks, public art, trails and gathering spaces to create a complete community that offers exceptional quality of life and long-term economic vitality.”

For more information about development and investment opportunities in Crystal Lake, please contact Heather Maieritsch at (815) 356-3737.

This article was produced in collaboration between Studio B and the city of Crystal Lake. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.