USAA, Golub Buy Chicago Apartment Tower for $80M
- Aug 06, 2014
Chicago—USAA Real Estate Co. and Golub & Co. have acquired Chestnut Place at 850 N. State Street in Chicago for $80.5 million, according to public records, from Chestnut Place Associates. The property is a 30-story residential tower just north of Downtown Chicago; it includes a mix of one- and two-bedroom apartments, totaling 280 units.
The property dates from 1980 and includes 6,500 square feet of first-floor retail and a parking garage with 196 spaces. At the time of the sale, it was 97 percent occupied. The new owners plan renovations of the retail space, as well as updates to the apartment units, corridors and lobby area, totaling about $5 million. Current amenities include a fitness center and 24-hour doorman.
USAA Executive Director David Reahl says, “Chestnut Place is in an A+ location in the Gold Coast submarket.” The Gold Coast is a highly coveted residential and commercial district in Windy City near the Lake Michigan shore. The apartments are also near Loyola University’s Downtown campus and across the street from the 845 N. State St., an apartment development by Newcastle Ltd. that’s now under way.
Michael Goldman and Collin McKenna of Golub, and David Reahl of USAA, negotiated the acquisition on behalf of the buyers. CBRE represented Chestnut Place Associates in deal.
This is the first JV acquisition for San Antonio-based USAA and Chicago-based Golub. USAA has about $12 billion in assets under management. Golub has owned, leased or managed about 45 million square feet of property in the United States and Europe since its founding more than 50 years ago.