Newstreet Acquired Chicago Office for Residential Project

The firm purchased a seven-story office building in Chicago to convert the space into 80 residential units.

Updated on Sept. 30, 2026 in Commercial

Newstreet Acquired Chicago Office for Residential Project

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Newstreet has acquired the office portion of an office building at 1165 North Clark Street for $6.8 million. The developer intends to transform the 74,500-square-foot property into an 80-unit multifamily complex.

Why it matters

This acquisition serves the growing local demand for residential housing in Chicago. By converting underutilized office space, the project aims to increase the city's housing supply.

The property spans 74,500 square feet and currently maintains 60 percent occupancy. Newstreet financed the deal using $1.3 million in equity alongside a $5.5 million loan from CRE Bridge Capital.

The players

Newstreet

A real estate development firm that focuses on residential projects and urban property conversions.

Goldman Sachs

A global financial institution that previously held ownership of the building at 1165 North Clark Street.

CRE Bridge Capital

A lending institution that provided the $5.5 million loan for the office-to-residential conversion project.

The details

The firm is currently offering early lease termination options to existing tenants of the building to clear the space for renovation. Construction on the new residential units is expected to last between 12 and 13 months.

Goldman Sachs purchased the building in 2015.
The ground-floor retail space was sold to YFP in 2022.
Newstreet acquired the office building in September 2026.
Construction is slated to begin in June 2027.

Culture Shift

This development aligns with the broader push to revitalize urban commercial districts through residential adaptive reuse. It follows the pattern of converting aging office inventory into modern housing to adapt to shifting occupancy trends.

Residents should anticipate transition periods as existing office tenants vacate the premises ahead of construction. The project will eventually add 80 units of residential housing to the Gold Coast neighborhood.

The takeaway

Adaptive reuse of commercial assets remains a key strategy for developers looking to navigate fluctuating office occupancy rates. Residents looking for housing in high-density areas may see an increase in supply as these conversion projects reach completion.