Club Studio Gym Leases Retail in Gold Coast Tower

Chicago’s Gold Coast commercial property market is flexing its muscle.

In the latest win for the city’s premier retail enclave, Club Studio Fitness inked a large, 32,000-square-foot lease at 1030 North State Street, CoStar reported. The high-end gym concept, owned by LA Fitness parent Fitness International, snagged the second and third floors at the Newberry on the Triangle, the retail podium anchoring the 52-story Newberry Plaza condo tower.

The deal cements a bold redevelopment move by the property’s Chicago-based landlords, 11 East Partners, led by Paul Fitzpatrick, and Blackbird Investment Group, led by Greg Adler and Todd Vender. They bought the retail space on the property’s lower floors for $16.9 million in 2018. Word of the Club Studio lease arrived just after the ownership last month scored a new $55.3 million loan against the property from New York-based BentallGreenOak, public records show.

Blackbird and 11 East’s sweeping overhaul of the original former Morton’s The Steakhouse space — which shuttered in 2020 after a legendary four-decade run at the property — is now validated. Club Studio joins Canadian eatery Moxies and boho-chic retailer Anthropologie at the building, capping a trifecta of premium tenants that breathe new life into the space.

The Gold Coast’s high-street corridors — especially Oak, Rush and Walton, with State Street in the mix as well — are experiencing a post-pandemic renaissance while the Magnificent Mile on Michigan Avenue is still grappling with depressed demand. Tenants such as jeweler David Yurman have decamped the Mag Mile to set up shop on Rush and other nearby Gold Coast thoroughfares.

Luxury retailers like Cartier, along with well-known brands Brandy Melville, Kith and Skims, have all planted or expanded Gold Coast flags recently, furthering the district’s reputation as an insulated haven for upscale retail and experiential concepts.

Still, Rush Street’s dining scene is in the throes of a high-stakes facelift following the closure of neighborhood stalwart Tavern on Rush in 2022 after owner Phil Stefani opted not to renew a lease for 1015 North Rush. The Tavern reopened in a 16,000-square-foot space inside the nearby Thompson Hotel in 2024.

With Club Studio’s entrance to the area, a pivot toward lifestyle-driven tenants is proving to be enduring. The transaction absorbs a crucial block of space just as a rare, large-format vacancy emerged across the street following Urban Outfitters’ recent exit.

Tether Advisors’ Willie Hoag represented Club Studio, while CBRE’s Danny Jacobson, Luke Molloy and Stephen Ansani brokered the deal for 11 East and Blackbird.

— Sam Lounsberry