Sterling Bay Companies has completed the acquisition of Fulton West, a portfolio of existing and partially completed office, retail and parking facilities, from an affiliate of Marc Realty. Sterling Bay purchased the property, with existing superstructure that can accommodate additional future development, for approximately $22 million.
In its current stage of development, Fulton West consists of three loft-style office buildings totaling approximately 165,000 square feet and parking facilities — structures and surface lots — for more than 314 automobiles. The Fulton West portfolio is bounded by Fulton Street North to Carroll Avenue between Elizabeth Street (eastern boundary) and Ada Street (western boundary).
Properties acquired in the transaction:
- 300 N. Elizabeth, a 121,751-square-foot office building; portions of the building are three, four and six stories; primary tenants of the building include The Federal Savings Bank, GSA – EPA, Yes for Independent Maps and Sierra Bravo Corp.
- 316 N. Elizabeth, a single-story, 2,100-square-foot office building that is leased to Seven Roasted Inc.
- 320 N. Elizabeth, a five-story, 41,853-square-foot office building that is leased to the Board of Education of the City of Chicago (Chicago Public Schools)
- Courtyard (between 300, 316, 320 N. Elizabeth) which serves as a surface parking lot with spaces for 50 automobiles
- 323 N. Ada, a two-story, 164 parking space parking garage
- 1325 W. Fulton, a surface parking lot with 100 parking spaces.
“Sterling Bay is committed to the Fulton Market area, having already invested considerable resources to redevelop the area,” John Gavin, the firm’s investment principal, said. “We invested $175 million in the 1K office development and the project is 90 percent committed with delivery scheduled for the 4Q 2014. The success of 1K Fulton continues to demonstrate the popularity and marketability of the area.”
The ability to acquire a number of existing assets plays an important role in the investment and management strategy for Sterling Bay. However, the greatest opportunity comes in the partially completed concrete superstructure at 1330 W. Fulton St. That planned development provides for additional office development totaling 270,000 square feet and a 750-space parking facility.
According to Gavin, depending on market conditions and demand, Sterling Bay expects that the projects could be completed by spring 2016.
