Chicago developer Sterling Bay is reportedly close to finalizing the sale of its Fulton Market District office complex serving as home to tenants like as Google, SRAM, and Sandbox Industries. Known as 1K Fulton, the building is expected to sell to California-based American Realty Advisors for $305 million after spending less than six months on market, reports Crain’s. The deal bodes well for Sterling Bay, who purchased the 10-story former Fulton Cold Storage building in 2012 for $12 million and transformed the aging industrial structure into state-of-the-art office space and added a modern six-story annex penned by Hartshorne Plunkard Architecture.
The sale is not only big news for Chicago’s rapidly-developing Fulton Market District, an area that until recent years was dominated by meat packers and food wholesalers, but also represents the third highest per foot sale price in Chicago real estate history. At 531,000-square-feet, the 1K Fulton deal works out to a per foot price of $574 — a figure eclipsed only by a pair of 2014 deals that saw downtown office towers 300 N. LaSalle and 353 N. Clark respectively change hands for $652 and $604 per square foot.
Sterling Bay is one of Chicago’s busiest developers and will continue to be a major player in Fulton Market’s office market even after unloading 1K Fulton. The firm’s Fulton West offices under construction at 1330 W. Fulton recently signed anchor tenant Glassdoor while its other large scale projects like 210 N. Carpenter and the future McDonald’s headquarters at 110 N. Carpenter are in pre-development.
UPDATE: The sale of 1K Fulton from Sterling Bay to American Realty Advisors was completed on July 1st. While initial reports evaluated the property at $305 million, the final sale price was $257 million according to Crain's.
- Google's Fulton Market offices selling for $305 million [Crain’s]
- Previous Fulton Market Coverage [Curbed Chicago]