Newcastle Starts $500M Portfolio With Area Buy

January 3, 2007

By Robert Carr

CHICAGO-Newcastle Ltd. has signed a contract for an undisclosed multifamily rental property as its first purchase of a $500-million investment platform in the Chicagoland area. The company is also currently negotiating other ground-up retail purchases as part of the new portfolio, says Michael R. Haney, president and chief executive officer of the locally based company.

He tells that he cannot disclose the purchased property, but says the recent transactions range from $5 million to $50 million. The multifamily property is a small apartment project of seven buildings, all in one neighborhood in Chicago, Haney says. The company is also negotiating on a few mixed-use properties, he says.

The company's capital comes from institutional and private investors. Haney says in the statement that the purchases will focus on the city and the downtown areas of suburbs. The company will target most types of commercial property, as well as multifamily sites, and will run the gamut of challenged buildings to successful properties, as well as new developments.

“What we’re doing is we’re taking institutional capital and applying it in an entrepreneurial way in urban settings,” Haney says. “Typically the transactions will be below the radar of institutional companies because the properties may be smaller in size than an institution can acquire on a case-by-case basis because of the expenses involved, or a neighborhood where institutional companies don’t focus. Also, by raising the capital up front, we can bring a swift and strong financial balance sheet to quickly acquire these assets in a way institutions can’t.”

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