Investment Pouring Into Fulton Market Office Properties
As massive new office towers continue rising in Fulton Market, bringing retail, restaurants and nightlife in their wake, investors are flocking to the neighborhood, and NARE Investments just became the latest buyer to establish a stake in the vibrant area.
The Sugar Land, Texas-based firm purchased a 69% condo interest in the 62K SF office building at 1400 West Fulton St., a three-story building brick and timber loft building. It will take ownership of 10 commercial loft units ranging from 1K SF to nearly 10K SF — 43K SF in total — and 13 parking spots.
“In this submarket, there is a lot of new construction, but it’s difficult to find smaller units, and this sale will allow NARE to offer flexible commercial unit sizes,” Colliers International | Chicago’s Michael Senner said.
Along with Colliers’ Thomas Volini, he represented the owner, West Fulton 1400 LLC, in the sale.
The price was undisclosed, but Senner said it was at a discount compared to other, recent high-profile sales in the neighborhood. In addition, the rental rates at 1400 Fulton have room to grow, and that combination will give NARE an opportunity to realize solid gains.
In one of the summer’s blockbuster deals, Charlotte, North Carolina-based Asana Partners bought 77K SF on Fulton Market and Carpenter Street for about $59M from New York-based Madison Capital and Bethesda, Maryland-based ASB Capital Management, a transaction first reported by Crain's Chicago Business.
Built in 1920, 1400 West Fulton St. was renovated between 2014 and 2017. Updates include the addition of rooftop decks, bicycle parking and high-end finishes, Senner said. The units are 97% occupied.
