One of the most expensive office deals in Chicago history is about to go down. According to Crain’s Chicago, the office building containing Google’s Midwest headquarters in the Fulton Market District, known as 1k Fulton, is set to be sold for $305 million.
The unique 10-story building, which has 531,1945 square feet of office space, is being bought by American Realty Advisors, an investment management firm based in Glendale, Calif. The sale price equates to about $574 a square foot. It’s the third-highest per-square-foot sale price in Chicago history.
Crain’s Chicago calls the sale of the building at 1000 W. Fulton Market “a landmark deal for the city’s emerging Fulton Market District.” It’s by far the most expensive real estate deal ever made in the Fulton Market District, a neighborhood in the northwest corner of the West Loop which was long dominated by food distribution businesses and meatpacking plants.
In recent years, Fulton Market has undergone a revitalization with developers adding boutique hotels, offices and retail space. This began with the arrival of Google to the area some years back, which added credibility to Fulton Market as a viable office district.
The big winners of the deal for the 1k Fulton building at 1000 W. Fulton Market is Sterling Bay. The Chicago-based developer purchased the former Fulton Market Cold Storage Building for just $12 million in November 2012 and converted it to modern offices.
According to Crain’s Chicago, the only larger office prices on a square-foot basis both came in 2014. The first was an $850 million deal for the 60-story tower at 300 N. LaSalle St., which equated to $652 per square foot; and the deal for the 46-story tower at 353 N. Clark St., which brought $715 million or $604 per square foot.
Chicago commercial real estate is drawing plenty of interest these days, the Fulton Market District in particular as illustrated by this whopping deal.