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Google’s Midwest Headquarters Trade at Fulton Market’s Second-Highest Price
(Updated with new information)
American Realty Advisors, which acquired Google’s Midwest headquarters in the Fulton Market District from developer Sterling Bay in 2016, is selling the property for $355 million. Office Properties Income Trust confirmed Monday that it was the buyer.
The sale is coming in at a 4.2% cap rate, the Chicago Tribune reported. The cap rate is believed to be a Chicago record for a multi-tenant office building, and reflects the relatively low risk of a building that’s 99% leased in downtown’s hottest office submarket.
1KFulton’s price will be the second-highest price for any building in Fulton Market, trailing only the $412.5-million deal for McDonald’s headquarters in October. The Tribune noted that this is a hopeful sign for Chicago’s office market, which reached record levels of vacancy during the COVID-19 pandemic.
American Realty Advisors was represented in the sale by the Chicago office of Eastdil Secured.
- ◦Sale/Acquisition
