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Commercial
Chicago

Newcastle buys second Gold Coast property for planned 11-story apartment tower

The Chicago firm has picked up two buildings at State and Division for its planned apartment project

Michael R. Haney Founder, President & CEO of Newcastle Limited with two Gold Coast properties they purchased for a combined $20 million
Michael R. Haney Founder, President & CEO of Newcastle Limited with two Gold Coast properties they purchased for a combined $20 million

Newcastle Limited completed the acquisition of land needed for its planned apartment complex at State and Division streets, with the developer paying $20 million for two separate buildings at the prominent Gold Coast corner.

The Chicago-based developer this month paid $10 million for 1206-1212 North State Street, which was home to the now-shuttered McFadden’s Restaurant and Saloon and the Hash House A Go Go, property records show. Selling the building was a private family trust, which had owned the property for more than 100 years, according to Mid-America Real Estate, which brokered the deal for the family.

In August, Newcastle paid $10.1 million for the building at 1200 North State Street, which currently houses a Chase bank and has two floors of office space.

Newcastle plans to replace the buildings with an 11-story complex that will include 102 apartments over ground-floor commercial space. The building will include 31 parking spaces and will is being proposed as a transit-oriented development due to its proximity to the Red Line, Alderman Brian Hopkins’ office said in March.

The project at State and Division is one of two apartment projects Newcastle has planned for the Gold Coast.

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At 1120 North State, the developer is proposing to build a 39-story, 368-unit tower that would replace one of the city’s last remaining Barnes & Noble bookstores. Newcastle has not yet closed on the Barnes & Noble property, said Brennan Hitpas, managing director of investment for Newcastle.

“We’re really just getting started,” he said of the projects.

Newcastle specializes in commercial development and acquisitions, and controls over 3,000 apartment units in the area.

Early this year, Newcastle bought a River West apartment complex for $85.5 million. Last summer, the firm paid $11.6 million for the ground floor retail space at Two West Delaware in the Gold Coast. That came just weeks after it picked up a retail building in Lincoln Park for $6.1 million.

Mid-America’s Joe Girardi, Stan Nitzberg and Emily Dutson represented the seller in the 1206 North State deal.

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ApartmentsCommercial Real EstateGold Coast