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Chicago,
Illinois
Newcastle helped transform a $10 million asset into $23.5 million
worth of value for The Art Institute of Chicago.
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The Need
The Jewelers Row Properties consisted of three functionally-obsolete historic
buildings located in a landmark district. The Art Institute of Chicago needed
to sell the properties to eliminate ongoing building maintenance, operating
costs and long-term debt. To support future growth, The Art Institute also
needed to replace existing offices and artist studios, and obtain new space
for classrooms, offices and a library expansion. The Assignment
Newcastle recommended a disposition strategy that included a sealed-bid
offering designed to elicit offers that would maximize The Art Institute’s
economic gain and accommodate its long term growth. We marketed the
properties to residential, retail and office developers, and provided
a comprehensive package of market, zoning and technical information.
A number of offers were generated, giving The Art Institute a range of alternatives to consider. |
The Result
Newcastle negotiated a transaction valued at more than $25 million that
provided the Art Institute with cash and new expansion space for the
School of The Art Institute. The sale of the properties – which
included development rights from adjoining properties and a complex
reciprocal easement agreement – will provide the School with
40,000 square feet of space at the base of a $200 million, 71-story,
360-unit luxury condominium tower being developed on the site.
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