CHICAGO—USAA Real Estate Co. and its partner Golub & Co. just acquired Chestnut Place, a 30-story residential building at 850 N. State St. Although the price was not disclosed, Cook County records show the companies paid $80.5 million.
Michael Goldman and Collin McKenna of Golub, and David Reahl of USAA, negotiated the purchase. The seller, Chestnut Place Associates, was represented by CBRE.
“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,” said Michael Newman, president and chief executive officer of Golub.
Built in 1980, Chestnut Place consists of 280 convertible, one-bedroom and two-bedroom apartments, with an average unit size of 769-square-feet. 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. Every unit has at least one corner window, and its location at the corner of Chestnut and State offers it a great deal of visibility from Michigan Ave. and Rush St.
“Chestnut Place Apartments makes a great addition to our investment portfolio,” said USAA chief executive officer 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 brings to bear, we anticipate driving strong income from this appealing asset on behalf of our investors.”