American Realty Advisors completed its acquisition of 1K Fulton last Friday. The official sale price of $257M is far less than the initial reported price of $305M, but it's still a blockbuster deal for one of Chicago's most notable adaptive reuse projects.

American Realty Advisors is getting an asset operating at near-peak efficiency since it opened late last year. The 531k SF facility, formerly a cold storage building, is 97% occupied. Google occupies two-thirds of the building as its Midwest HQ. It's also home to bike parts manufacturer SRAM (we toured its offices earlier this year), Sandbox Industries and Swift & Sons steakhouse. Seller Sterling Bay bought the building for $12M in 2012 and built a six-story extension next door.

American Realty Advisors managing director Ray Kivett says the purchase fits all of the firm's criteria: superior location, great tenants, and high-quality construction and amenities. Additionally, average in-place rents are approximately 15% below market, which supports the purchase price and provides the opportunity for American to increase cash flow and returns for investors. Sterling Bay was repped by Eastdil Secured's Ray Knapp and Steven Livaditis.