Lawsuit May Block Newcastle's $68M Fulton Market Play
The latest real estate firm aiming to plant stakes in Fulton Market is Newcastle, but there's one major obstacle standing in the way. Newcastle has a $68M deal in place for a full block of buildings bounded by Randolph, Peoria and Green streets, and Washington Boulevard, but it's got to work through a lawsuit first.
If the deal can be completed, it would be the highest price paid for a full block of buildings in Fulton Market since Tucker Development and Acadia Realty Trust paid $52M last November for what is being redeveloped into 900 West. The buildings Newcastle wants to buy were owned by Sue Gin, the late owner of Flying Food Group, who passed away two years ago.
But a potential lawsuit could torpedo the deal. Lots of Chicago, a parking lot operator owned by the Youkana family, filed suit in Cook County Circuit Court in June, claiming it had the right of first refusal on any potential sale, according to Crain's. The suit also alleges that Gin's estate is in violation of the law by not offering a separate price and option to buy just the parking garage that's part of the deal.
Still, the Newcastle deal shows that demand for real estate in Fulton Market has not peaked. In addition to Newcastle and the Tucker/Acadia JV, McCaffery Interests, L3 Capital and Thor Equities have all brought serious skin to the market, acquiring and redeveloping assets at a rapid pace. [Crain's]
