Sterling Bay and institutional investors advised by J.P. Morgan Asset Management have completed the sale of 110 N. Carpenter, a 575,000-square-foot, newly constructed office building located in Chicago’s Fulton Market neighborhood. JLL Capital Markets marketed the sale of the property and procured the private buyer for a final sale price of $412.5 million, a Fulton Market record and Chicago’s highest-priced property sale of the year.
“Completing the sale of 110 N. Carpenter in the midst of an uncertain economic market is a testament to the city of Chicago’s ability to attract outside investment and secure important capital for its future,” said Andy Gloor, CEO of Sterling Bay. “We are proud to continue our track record of success in developing properties across the city that deliver critical financial opportunities to our hometown.”
The nine-story, Class A asset is currently 97 percent leased to five tenants, most notably McDonald’s global headquarters which has a long-term lease in its 490,000-square-foot space at the property. Completed in 2018, 110 N. Carpenter is LEED Platinum certified and features state-of-the-art amenities including flexible floor plans, floor-to-ceiling windows, a collaboration space with stadium seating, several outdoor terraces with sweeping views of the skyline and on-site parking with a bike room. Other tenants currently include Walgreens, FedEx and Politan Row.
Built on the former site of Harpo Studios, 110 N. Carpenter was acquired by Sterling Bay in 2014 and occupies a full city block in one of Chicago’s most popular live-work-play submarkets. The property is situated just steps from all forms of public transit, numerous restaurants, hotels and retailers and has many notable corporate neighbors including Google’s Midwest headquarters.
According to JLL, this sale follows on the heels of a few other high-profile dispositions proving that there continues to be significant investor demand for large, high-quality office buildings in the Chicago CBD. These assets are not experiencing price declines due to the pandemic.
Debevoise & Plimpton advised J.P. Morgan Asset Management in the sale and their team included real estate partner Edward Rishty and associate Christian Frazier. The building was developed by Sterling Bay; Gensler served as architect of record; interiors were designed by IA Interior Architects and Studio O+A; Omni Ecosystems provided green infrastructure elements and the general contractors were McHugh Construction and ECI Executive Construction Inc.
