Sterling Bay Switching To Sell Mode In Fulton Market
Sterling Bay's $35M sale last October of a Fulton Market retail portfolio to The Feil Org. was an initial sign that the firm would turn into a seller in the market it helped develop. Now, Sterling Bay and JP Morgan Asset Management are seeking mid-eight-figure bids for three buildings they rehabbed in the neighborhood, Crain's Chicago Business reports.
The Sterling Bay-JP Morgan JV retained CBRE to sell the buildings at 300 North Elizabeth, 306 North Elizabeth and 320 North Elizabeth, and is hoping for $40M to $45M bids for the assets. The office buildings are home to companies like Uber, Federal Savings Bank and marketing firm Mosaic, and are 90% occupied. Sterling Bay bought the entire block bounded by Elizabeth and Ada streets, Carroll Avenue and Fulton Market in a $22M deal three years ago, and spent an extra $10M rehabbing the buildings.
Sterling Bay principal John Gavin said it is time to monetize on the market it helped build. "Sterling Bay doesn't hold anything. We buy it, we fix it, we sell it." And while Sterling Bay is still building in Fulton Market, the firm has been aggressively disposing of properties. In addition to the Feil deal, Sterling Bay sold 1K Fulton to American Realty Advisors last July in one of the Chicago market's biggest office deals of 2016.