In what would be the largest office acquisition in Chicago’s CBD in the past two years, Sterling Bay and JPMorgan Asset Management appear to be in negotiations to sell the McDonald’s headquarters building in Fulton Market. The buyer has reportedly agreed to pay more than $430 million for the asset.
As first reported by Crain’s, an undisclosed venture led by a Pittsburgh-area family office is close to finalizing the deal. Sterling Bay put the property, located at 110 N. Carpenter Street, on the market earlier this year, tapping JLL to locate a buyer.
The Chicago-based developer acquired the land—formerly home to Harpo Studios—in 2014 for more than $30 million. A $209 construction loan and a later $256 million refinance mean that Sterling Bay and JPMorgan Asset Management are due quite the windfall should the transaction go through as reported.
Completed in 2018, 110 N. Carpenter is a LEED Platinum certified office asset featuring state-of-the-art amenities including flexible, open floor plans, floor-to-ceiling window lines, a 700-person conference center, a collaboration space with stadium seating, several outdoor terrace spaces, a fitness center with picturesque views of the skyline and on-site parking with a bike room. McDonald’s Corp. occupies 490,000 square feet of the building through 2033, including its on-site training facility, Hamburger University, and a 6,000-square-foot, ground-floor international restaurant. Other tenants currently include Walgreens, FedEx and Politan Row.
The building was developed by Sterling Bay; Gensler served as architect of record; interiors were designed by IA Interior Architects and Studio O+A; and the general contractors were McHugh Construction and ECI Executive Construction Inc.
Sterling Bay recently sold 1330 W. Fulton Street, also known as Fulton West, to German real estate firm Commerz Real for $175 million. The property, which Sterling Bay developed in 2017, served as the developer’s corporate headquarters. Fulton Market has exploded in popularity since developers have transformed the former manufacturing district, attracting global corporations. Last October, the neighborhood was named named a Top 20 “Cool Street” in North America.