Chicago Office Building Converted Into 80 Apartments

Newstreet purchased the Gold Coast property for $6.8 million to create new rental housing units.

Updated on Sept. 30, 2026 in Commercial

Chicago Office Building Converted Into 80 Apartments

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Do you support converting underused office buildings into residential apartments in your community?

The developer Newstreet has acquired a seven-story office building at 1165 North Clark Street for $6.8 million. The firm plans to transform the 74,500-square-foot space into an 80-unit multifamily residential complex.

Why it matters

This conversion project aims to address local housing needs by repurposing underutilized commercial space currently at 60 percent occupancy. It reflects a shift in real estate strategy for older office buildings facing lower demand.

Newstreet acquired the office portion of the building for $6.8 million, backed by a $5.5 million loan. The project will yield 80 units within a building that was recently valued by the Cook County Assessor at $11.5 million.

The players

Newstreet

A residential developer focused on multifamily housing projects and office-to-residential conversions.

Goldman Sachs

An investment bank that manages diverse real estate holdings and formerly owned the 1165 North Clark Street property.

CRE Bridge Capital

A commercial real estate lender providing financing for development and property acquisition projects.

The details

Newstreet financed the acquisition through a combination of $1.3 million in equity and a $5.5 million loan from CRE Bridge Capital. To prepare for the transition, the firm is currently offering early lease termination options to existing commercial tenants. Construction is scheduled to span 12 to 13 months, during which the office structure will be retrofitted into one-bedroom and two-bedroom residential apartments.

2015: Goldman Sachs purchased the entire building.
2022: Goldman Sachs sold the ground-floor retail space.
September 2026: Newstreet completed the office acquisition.
June 2027: Planned start date for construction.

Money Landscape

This conversion occurs against a backdrop of regional development aimed at improving housing inventory. It highlights the trend of redeveloping office assets to meet demand in urban corridors.

Current tenants of the building should review their lease agreements for early termination details provided by the new ownership. Prospective renters should monitor local development updates for information on potential lease opportunities starting in 2027.

The takeaway

Office-to-residential conversions are an emerging strategy to revitalize older buildings with low occupancy rates. Homeowners and renters in the Gold Coast area may want to watch for updates on when these new residential units will hit the local market for lease.