AUGUST 07, 2019
JENNIFER WATERS
Sterling Bay to Sell Chicago Headquarters to German Investor Trade for Reported $175 Million Would Be City's Largest Office Deal of the Year
Sterling Bay opened its Chicago headquarters at 1330 W. Fulton St. in 2017. (CoStar)
Sterling Bay, the developer that was a driving force in creating an office district in Chicago's flourishing Fulton Market neighborhood, may find its risk paying off with what could be the biggest commercial sale on a per-square-foot basis in the city this year.
Commerz Real, the German-based real estate investor, agreed to purchase the eight-story building at 1330 W. Fulton St. for roughly $175 million, according to reports by Real Estate Alert and Crain's Chicago Business.
That would work out to a whopping $603 per square foot, well above the second-highest recorded by CoStar research so far this year, at $189 per square foot. Sterling Bay did not want to comment on the sale, but it if closes at that price, it will lend more credibility to the pace of office development – and value – of the fastest-growing area of the nation’s third-largest city.
Fulton Market, the former meatpacking district in a corner of the West Loop, has been in demand since Sterling Bay first planted its foot there in 2013, building what would become Google’s Midwest headquarters at 320 N. Morgan St. in 2015.
The 290,000-square-foot Fulton building opened in 2017 as Sterling Bay’s headquarters as well as the home base for Skender Construction, Dyson’s U.S. division and Glassdoor. It is 98% leased, according to CoStar data.
What makes the price stand out even more is that this has been the slowest first half in Chicago office property sales since 2011. Sales through June hit $768 million, according to CoStar research, failing to hit at least $1 billion since 2011.
That’s a 77% year-over-year decline and a 70% decline from the $2.6 billion of sales the market averaged in the first half of the year over the past five years.
This is the second Chicago purchase for Commerz Real, which paid $197 million for a 20-story office building at 125 S. Clark St. last year.
JENNIFER WATERS
Sterling Bay to Sell Chicago Headquarters to German Investor Trade for Reported $175 Million Would Be City's Largest Office Deal of the Year
Sterling Bay opened its Chicago headquarters at 1330 W. Fulton St. in 2017. (CoStar)
Sterling Bay, the developer that was a driving force in creating an office district in Chicago's flourishing Fulton Market neighborhood, may find its risk paying off with what could be the biggest commercial sale on a per-square-foot basis in the city this year.
Commerz Real, the German-based real estate investor, agreed to purchase the eight-story building at 1330 W. Fulton St. for roughly $175 million, according to reports by Real Estate Alert and Crain's Chicago Business.
That would work out to a whopping $603 per square foot, well above the second-highest recorded by CoStar research so far this year, at $189 per square foot. Sterling Bay did not want to comment on the sale, but it if closes at that price, it will lend more credibility to the pace of office development – and value – of the fastest-growing area of the nation’s third-largest city.
Fulton Market, the former meatpacking district in a corner of the West Loop, has been in demand since Sterling Bay first planted its foot there in 2013, building what would become Google’s Midwest headquarters at 320 N. Morgan St. in 2015.
The 290,000-square-foot Fulton building opened in 2017 as Sterling Bay’s headquarters as well as the home base for Skender Construction, Dyson’s U.S. division and Glassdoor. It is 98% leased, according to CoStar data.
What makes the price stand out even more is that this has been the slowest first half in Chicago office property sales since 2011. Sales through June hit $768 million, according to CoStar research, failing to hit at least $1 billion since 2011.
That’s a 77% year-over-year decline and a 70% decline from the $2.6 billion of sales the market averaged in the first half of the year over the past five years.
This is the second Chicago purchase for Commerz Real, which paid $197 million for a 20-story office building at 125 S. Clark St. last year.