Shapack Partners has sold 811 W. Fulton Market to Boston-based Intercontinental Real Estate for $50.3 million. The sale price equates to $775 per rentable square, surpassing the previous record in Chicago of $734 that the RxBar headquarters at 412 N. Wells Street in River North achieved earlier this year.
That’s quite the return as a joint venture led by Shapack acquired the site in 2014, then just a parking lot, for $2.6 million. Even after the more than $20 million capital sunk into the site to develop the 70,000-square-foot office building, the joint venture has more than doubled its investment. Though built on spec, the building has attracted notable tenants, including commercial and residential furniture powerhouse Knoll, Chicago trading firm BlackEdge Capital and women-focused co-working outfit The Wing.
“My vision for Fulton Market was to maintain its authenticity, while creating one of Chicago’s most sought-after neighborhoods for brands coming from within Chicago and outside of Illinois,” said Shapack Partners founder and CEO, Jeff Shapack. “It is rewarding to have the sale of 811 Fulton epitomize the success of an organically grown neighborhood in Chicago.”
This is not Intercontinental’s first foray into the hot neighborhood. They are partnering with The John Buck Company and Lendlease to develop a two-tower mixed use building at 845 W. Madison. Slated to welcome its first residents in Summer 2020, the full-block development will include over 575 residences and 10,000 square feet of retail space. The firm also codeveloped, along with Chicago-based Jupiter Realty, the 336-room, dual-branded Hampton Inn by Hilton Chicago Downtown West Loop and Homewood Suites by Hilton Chicago Downtown West Loop at 116 N. Jefferson.