Loyola Buys $40M Sites for Future Expansion

CHICAGO-Loyola University has acquired two properties adjacent to Loyola’s Water Tower Campus. The two parcels were bought for $40 million. The two sites include a four-story residential and retail complex at 800-04 N. State St. and 4-10 W. Chicago Ave., and a parking lot adjacent to the property, says Mike Haney, president and CEO of Chicago-based Newcastle Limited.

The YMCA of Metropolitan Chicago sold the parking lot. The seller of the retail and apartment building was a private investor group based in Chicago, Haney tells GlobeSt.com.

“Loyola is located across the street from these properties” and acquired the properties “so it has the opportunity to grow its campus in the future,” Haney says. The university, which was founded in 1870, has enrollment of more than 15,500 students.

Both the building and the adjacent parking lot will continue to be operated as they had been, he says. The four-story building has 18 apartment units and six retail stores. The retail and the apartments are 100% occupied, Haney tells GlobeSt.com. The monthly apartment rental rates are approximately between $1,200 and $2,100.

The YMCA in the Chicago area has been in the process of selling parcels with “high property values, but low mission values,” Haney says. “They have been then taking the proceeds and redeploying towards other real estate or other endeavors.” YMCA was looking to sell the lot, and the owners of the building were approached to see if they would be interested in selling as well, Haney says. “Loyola was just an obvious potential buyer for the properties,” he says. The YMCA is retaining ownership of its nearby Lawson House, and some of the parking, he says. YMCA has also recently sold a 4.3-acre property in LaGrange, IL and a 254-acre parcel in Lindenhurst, IL, with Newcastle representing the organization in both of the transactions.