The historic Sullivan Center in the Chicago Loop is being sold to a group of New York investors for a reported $267 million. Crain’s Business Journal reports the 117-year-old structure, which was formerly known as the Carson, Pirie, Scott and Company Building, is being bought by Madison Capital in what it called “a complicated real estate deal that took more than a year to complete.”
Located at 1 S. State Street, the Sullivan Center opened as a retail outlet in 1899 and was made a Chicago Landmark in 1975. In its current form, there is 946,000 square-feet of office and retail space.
Crain’s Business Journal reports the building had been on the market since September 2014. It will not be Madison Capital’s first foray into Chicago commercial real estate. Crain’s pointed out the firm already owns the retail building across the street from the Sullivan Center at 10 S. State Street, as well as the retail portion of the 100-story John Hancock Center and buildings in the Fulton Market district.
The Sullivan Center’s flagship retailer for more than 100 years was the Carson Pirie Scott department store until its closure in 2007. There is now a large Target in the building, which Crain’s reports is 96% leased. That’s a significant improvement from the 87% lease rate at the time the building first went on the market. Other tenants at the Sullivan Building include Raise.com, Centro and the Illinois Department of Employment Security.
The Sullivan Center was designed by Louis Sullivan. It’s development came as a result of the Chicago Great Fire of 1871, according to online sources.