Chicago Tribune www.chicagotribune.com – August 26, 2008

Newcastle Gets Mortgage From PrivateBank – By Eddie Baeb

CHICAGO — Chicago-based Newcastle Ltd. has obtained a $14.1-million mortgage from PrivateBank for its recent purchase of nine retail properties on Clark Street in Andersonville.

The real estate investment and advisory firm bought the nine properties for $22.5 million in June from RayMark Venture LLC. All the properties are in the 5100 to 5400 blocks of Clark, the main retail drag in the Northwest Side neighborhood.

Newcastle bought the properties with all cash, and on July 31 secured a variable-rate mortgage for just more than 60% of the purchase price from Chicago-based PrivateBank. The loan comes due in three years, on July 31, 2011, though it may be extended two years, according to the mortgage, which was filed with the Cook County Recorder of Deeds.

The purchase of the nine properties, which are primarily retail but also include some office space, was something of a departure for Newcastle, which is known mainly as a North Side apartment investor.

Related story: Newcastle buys 9 Andersonville retail properties

Newcastle CEO Michael Haney said in July that he planned to place debt on the properties, probably amounting to about 60% of their value.

Newcastle has been an active buyer this year. In January, the firm paid $122.5 million for a seven-building apartment portfolio in Lakeview and Lincoln Park.

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