Source: USAA Real Estate / #Apartments #Multifamily
CHICAGO, IL - USAA Real Estate Company announced the acquisition of Chestnut Place, a 30-story residential building located at 850 N. State Street in Chicago, in partnership with Chicago-based Golub & Company, an international real estate investment and development firm.
Michael Goldman and Collin McKenna of Golub, and David Reahl of USAA, negotiated the acquisition. The seller, Chestnut Place Associates, was represented in the transaction by CBRE. The purchase price is undisclosed.
"Chestnut Place Apartments makes a great addition to our investment portfolio," commented USAA Real Estate Company CEO Len O'Donnell. "With its prime location in the Gold Coast -- one of the most sought after residential and retail submarkets in Chicago -- as well as the superior management capabilities Golub & Company brings to bear, we anticipate driving strong income from this appealing asset on behalf of our investors."
Built in 1980, Chestnut Place consists of 280 convertible, one-bedroom and two-bedroom apartments, with an average unit size of 769 square feet. Half are one-bedroom units, preferred by most Near North renters. Current amenities include a fitness center and 24-hour doorman. The building also includes a 196-space, 4-story parking garage and 6,500 square feet of ground floor retail space. Chestnut Place was constructed to give every unit at least one corner window, and its location at the corner of Chestnut and State Streets offers it a unique level of visibility from Michigan Avenue and Rush Street.
"We see tremendous potential for income growth at Chestnut Place," said Michael Newman, president and CEO of Golub. "Our plan is to make upgrades to the residential units, significantly expand on-site amenities, and improve the facades of ground-floor retail spaces to be more inviting to tenants and patrons alike."