Completing a deal that was first announced last December, Chicago-based real-estate developer Sterling Bay has acquired the approximately 1.65-million-square-foot 600 W. Chicago Avenue from Sam Zell’s REIT, Equity Commonwealth. Formerly a Montgomery Ward catalog warehouse, the building is now home to more than a dozen office tenants, anchored by Groupon’s global headquarters.
At $510 million, this was Sterling Bay’s largest deal to date. Located on the east side of the Chicago River’s North Branch, the building is 94 percent leased. In addition to Groupon, tenants include high speed trading firm Infinium Capital Management, Big Ten Network, venture capital firm Lightbank and Echo Global Logistics.
“The property at 600 W. Chicago Avenue is a tremendous addition to the Sterling Bay portfolio,” said Andy Gloor, Sterling Bay’s managing principal. “This purchase marks an exciting milestone in our firm’s growth and expansion. We look forward to working with the property’s various tenants to create an updated, engaging building experience, while maintaining the integrity of this historic building.”
The purchase of 600 W. Chicago Avenue, one of two Chicago properties remaining in Equity Commonwealth’s portfolio, is the latest in a string of high-profile projects for Sterling Bay, who recently acquired a 17.8-acre Fleet Management site and a 2.2-acre site as part of their Lincoln Yards development on Chicago’s north side, closing both deals at $104.7 million and $11.45 million, respectively. Sterling Bay is also currently developing McDonald’s new global headquarters building in Chicago’s Fulton Market district.
