Urban Equity Properties is planning to renovate this building at the corner of Church and State streets into 35 mid-century modern lofts and an 8,000-square-foot grocery store. (Photo by Kevin Haas/Rock River Current)

By Kevin Haas
Rock River Current
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ROCKFORD — A new development in downtown will bring mid-century inspired lofts and a grocery store to the corner of State and Church streets.

The latest project from Urban Equity Properties will transform the four-story Nu-State Building, 119 N. Church St., into 35 mostly one-bedroom lofts on the upper levels and an 8,000-square-foot grocery store at the ground floor.

The developer is working with the owners of Downtown Discount Drugs, which now occupies the ground floor, to create a grocery store with fresh produce, a deli, lunch by the pound, craft beer and wine, a pharmacy and a UPS location. It would be called City Center Market.

“We’ve needed a grocery store downtown since I started down here, and years before that probably,” said Justin Fern, founding principal of Urban Equity Properties. “We’re super excited. It’s taken me 15 years to get a grocery store downtown and we’re finally there.”

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Construction is underway on the roughly $13.5 million project, which does not use any city funding. The interior demolition was completed about two weeks ago. The goal is to complete the renovations and open in late 2024.

Mayor Tom McNamara said the project will help the city address its continuing need for more residential housing. Realtors have stressed for more than two years that there’s not enough inventory of homes for sale in the region.

“We know through third-party studies: We need more housing in our community,” McNamara said. “We need more rental housing. We need more single-family and duplex housing in our community.

“We need it in all three areas: We need more affordable housing, we need more market-rate, we need more luxury.”

This rendering from Rockford-based Bunj Killer Creative shows the concept for City Center Market grocery store at Church and State streets in downtown Rockford. (Image provided by Urban Equity Properties)

The occupancy rate of downtown apartments is above 95%, McNamara said. He expects the latest projects — including this, the new luxury apartments at 301 S. Main St. and the Water Power Lofts in southwest Rockford — will prove popular.

“We know as quick as we build them, people rent them and live in them and absolutely love doing it,” McNamara said.

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The Nu-State Building was constructed in 1951 by Rockford contractor Max Liebling, who also built the Times Theater about two blocks away in downtown. GT Partners, another development group, is working on plans to bring that theater back to life as a mid-sized music and arts venue.

Osco Drug anchored the Nu-State property from 1951 to 1983. The building was owned by the Tuite family for years until Urban Equities purchased it in 2018.

These renderings from Urban Equity Properties show the interior planned for new lofts at Church and State streets in Rockford. (Image provided by Urban Equity Properties)

Fern said that Urban Equities gives all its developments a different feel that fits the character of the original building. For example, the Water Power Lofts on South Main Street have an industrial look with high ceilings and concrete columns. The soon-to-open lofts at 301 S. Main St. have an ultra-modern luxury look, including a fitness center with all Peloton equipment.

“All of our buildings are unique,” Fern said. “Each building we do, we literally try to make sure it’s different than the last building we did and it has its own architectual design and feel. From not just the unit itself, but the name, look and the ambiance of the building.”

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The Nu-State Apartments will lean heavily into mid-century modern design.

“It will have all sorts of cool 50s and 60s greens and oranges, and Tiki light fixtures and maybe even certain shag carpets,” Fern said. “Things that you haven’t seen in a long time.”

He also said there will be ceramic tiled showers instead of the one-piece fiberglass tub seen more frequently now. Bathroom floors will be terrazzo or ceramic tile. The lofts will be rented for roughly $1,200 to $1,500 per month.

The building includes an 80-space parking lot at the corner of Church and Mulberry streets.

“It’s a building that was completely underutilized, and now will be a fantastic building with a grocery store on the hard corner of State and Church,” Fern said. “Right in the center of where hundreds and hundreds of people are working and living.”

Urban Equity Properties plans to convert the Nu-State building in downtown Rockford into 35 lofts and a grocery store. Construction is underway and slated for completion in late 2024. (Image provided by Urban Equity Properties)

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas