CHICAGO—The pace of significant office sales in Chicago had slowed down, but Sterling Bay just completed one of the largest in years. The Chicago-based real-estate developer and investor, along with institutional investors advised by J.P. Morgan Asset Management, have acquired for $510 million the approximately 1.65-million-square-foot former Montgomery Ward catalog warehouse located at 600 W. Chicago Ave. from Sam Zell's Equity Commonwealth.
Located on the east side of the Chicago River's North Branch, the property, now home to Groupon, is 94% leased. In addition to Groupon, tenants include Echo Global Logistics, Uptake Technologies, Jump Trading, Big Ten Network and venture capital firm Lightbank.
“The property at 600 W. Chicago Avenue is a tremendous addition to the Sterling Bay portfolio,” says 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 is just the latest in a string of high-profile projects for Sterling Bay, which 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. The developer has also begun developing McDonald's new global headquarters building in Chicago's Fulton Market district.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
