Louis Sullivan-Designed Landmark Sells After Nearly Two Years On Market
After being on the market for nearly 18 months, the Sullivan Center—a Chicago landmark—has a new owner. Madison Capital bought the Louis Sullivan-designed building at 1 S State St from a JV led by Winthrop Realty Trust in what is believed to be a $267M deal.
Winthrop and Elad Canada put the 946k SF mixed-use building on the market in September 2014, but there were several hoops to jump through before Madison Capital could seal a deal. Developer Laurence Freed, best known for developing Block 37, gave up a majority stake in the building to the Winthrop-Elad JV in 2012. (Freed was convicted of fraud in separate real estate deals last month.) Tax credits on Sullivan Center owned by separate investors prevented a buyer from maximizing the asset's value by separating the retail and office components until 2018, Crain's reports. Elad is eliminating that provision, allowing Madison Capital the option of separating the building's retail and office facets.
Sullivan Center is best known as the former home to Carson, Pirie Scott department store. Built in 1899, it's been used for retail for its entire life and was declared a Chicago landmark in 1975. [Crain's]