The Belmont by Reside Chicago, Illinois

Newcastle transformed a 307-unit, vintage apartment building into modern apartment community that's yielding impressive returns.

The Need

Newcastle acquired The Belmont for $51 million, as part of a 7-property, $122 million acquisition from Wexenthaller Realty. These long-term owners were looking to wind down their portfolio and were seeking an all-cash buyer that could purchase the entire portfolio in a quick time frame and assume existing financing so that the seller would not receive pre-payment penalties. From contract execution, Newcastle purchased the portfolio within 90 days.

The Assignment

The 307-unit apartment building was constructed in 1924 as a luxury hotel and was last renovated about 10 years prior to Newcastle’s acquisition. The building’s benefited from an excellent location, access and visibility, but was in need of a major overhaul. Over the 3-year period, Newcastle undertook a $10 million renovation which included updating and reprograming common areas, adding a first-class amenity package, and renovating apartments including kitchens and bathrooms. Newcastle completed this work on schedule and on budget while maintaining occupancy above 95%.

The Result

The property is continually recognized as a premiere apartment community in Chicago, and was recently recognized nationally as Top 30 apartment community by Multifamily Executive. Not only are the residents pleased, but the asset continues to perform well for its investors. With a long-term debt in place, the Belmont will continue to yield strong returns and is well positioned for continued growth.