Sale of two Fulton Market offices leased by Google
No tenant other than Google can appease the mind of a real estate investor amid the turmoil of a pandemic-filled year. Okay, maybe Amazon. But then Google.
Two Fulton Market office complexes that the tech giant is leasing are selling to separate buyers for more than $ 500 million combined, according to Crain’s. The deals also highlight the continued strength of Chicago’s Fulton Market neighborhood and are a positive sign that the city’s pulverized office market is slowly recovering.
In the largest purchase, Google headquarters in the Midwest is going to an undisclosed buyer for around $ 360 million, according to the report. That’s about what owner American Realty Advisors was looking for for the 520,000 square foot complex at 1000 W. Fulton Market when he listed the property in late April.
The price is also about 20% more than ARA paid Sterling Bay for the 10-story building in 2016. This is a big comeback in a city’s office market with vacancy rates. in the first quarter peaked in 15 years. Google occupies 387,000 square feet in the almost fully leased building.
In the other deal, Deka Immobilien is paying around $ 170 million for the 210 N. Carpenter Street complex in Sterling Bay. Google signed its lease for 132,000 square feet in the 200,000 square foot building before construction was completed in 2019.
This is Deka’s second major Chicago office purchase in a year. The German real estate company paid $ 85 million for an office complex at 905 W. Fulton Market in May 2020. Thor Equities developed the five-story, 98,000-square-foot building. It will be the future global headquarters of snack maker Mondelez International, which will occupy 77,000 square feet. Mondelez signed this lease in early 2019. Over the past year, many businesses lost downtown offices, canceled future plans, hit the sublet market, or left town altogether.
[Crain’s] – Alexi Friedman