Newstreet Buys Gold Coast Office Building for $6.8M, Plans 80-Unit Residential Conversion

Chicago multifamily developer Newstreet acquired a seven-story office building at 1165 North Clark Street for $6.8 million, with plans to convert the 74,500-square-foot property into an 80-unit apartment complex in the Gold Coast neighborhood, the firm confirmed. Newstreet, recently rebranded from Initium Development, purchased only the vertically-separated office portions, excluding ground-floor retail and parking. The seller, Goldman Sachs, had paid $22.8 million for the entire 110,000-square-foot building in 2015. Cook County Assessor now estimates the building's market value at $11.5 million. The deal was financed through a mix of equity and a $5.5 million loan from Chicago-based CRE Bridge Capital, with Newstreet and an anonymous equity partner contributing $1.3 million. Construction is targeted for summer 2027, with 12 to 13 months to move-in. The building is currently 60 percent occupied.