With Fulton Market booming and land values soaring, it’s only natural to see more build-to-suit development opportunities being marketed as a blank canvass to potential investors looking to get in on the West Loop’s real estate explosion. One such parcel billed with "ultimate flexibility" is located at 1201 W. Fulton Market. Though the images provided in the marketing flyer from NAI Hiffman are little more than conceptual renderings, it’s an interesting proposition for a developer with plenty of cash and a little bit of patience.
Due to a lease agreement between the site’s owners and current tenant the Revel Group not set to expire until 2024, the redevelopment of 1201 W. Fulton isn’t exactly shovel ready. Any land transaction would therefore require the new owners to honor the existing agreement but collect an annual return of roughly $289,000 from Revel. Things can move a little quicker thanks to a favorable termination clause built into the lease that can be exercised as early as 2019.
If a buyer decides to pursue the redevelopment route, the property has a couple of key perks in addition to its location in a hot neighborhood. The property falls outside the Fulton Market landmark district and is part of the recently expanded Downtown Zoning District in which additional density can be granted in exchange for investing in Chicago’s Neighborhood Opportunity Fund. The site does carry a manufacturing zoning designation that would need to be amended in order to allow the type of development pictured in the promotional flyer.