CHICAGO — American Realty Advisors has acquired 1K Fulton, a Class A office property in Chicago, for $257 million. The complex consists of a 10-story building, formerly a cold storage facility that was built in 1923, and a six-story building that was added in 2015. Sterling Bay was the seller of the 550,000-square-foot property, which is currently 97 percent leased.
Hartshorne Plunkard Architects designed the complex. Google’s Midwest headquarters currently occupies roughly two-thirds of the office space.
“We were attracted to this asset because it has long-term leases with quality tenants, such as Google,” says Martha Shelley, senior portfolio manager for American Realty Advisors. “We anticipate that this property will remain a key driver of the continued growth of the River West Fulton Marketplace over time given the abundance of street level amenities, immediate proximity of public transportation, new hotels and housing adjacent to this asset.”
Floor plates at 1K Fulton range from 38,500 square feet to 71,000 square feet. Amenities at the property include indoor parking, a rooftop deck, shuttle service, Pressbox dry cleaning, ZipCar, bicycle detailing and repair station, a fitness center and ground-floor retail and restaurants.
“This acquisition fulfills all of our criteria: superior location, great tenants, and high-quality construction and amenities,” adds Ray Kivett, managing director of investments for American Realty Advisors. “In addition, average current in-place rents are approximately 15 percent below market, which supports the purchase price of $257 million, providing the opportunity for American to increase cash flow and returns for investors.”
Based in Glendale, Calif., American Realty Advisors acquires real estate assets and provides equity and debt to investors and developers throughout the United States.
— Christina Cannon