Chicago-based real estate developer and investor Sterling Bay and institutional investors advised by J.P. Morgan Asset Management have acquired a Chicago office property from Equity Commonwealth. The price of the acquisition was $510 million. Among the property’s current tenants are Groupon, Uptake Technologies and Lightbank.
CHICAGO, Feb. 22, 2018 /PRNewswire/ — Sterling Bay, the Chicago-based real-estate developer and investor, and institutional investors advised by J.P. Morgan Asset Management today announced the acquisition of the approximately 1.65-million-square-foot former Montgomery Ward catalog warehouse located at 600 W. Chicago Avenue from Chicago-based real estate investment trust Equity Commonwealth, led by Sam Zell. Now home to Groupon’s headquarters, the property was purchased for $510 million, making it Sterling Bay’s largest deal to date.
Located on the east side of the Chicago River’s North Branch, the property is 94 percent leased. In addition to Groupon, tenants include Echo Global Logistics, Uptake Technologies, Jump Trading, Big Ten Network and venture capital firm Lightbank.
“The property at 600 W. Chicago Avenue is a tremendous addition to the Sterling Bay portfolio,” said Andy Gloor, Sterling Bay’s managing principal. “This purchase marks an exciting milestone in our firm’s growth and expansion. We look forward to working with the property’s various tenants to create an updated, engaging building experience, while maintaining the integrity of this historic building.”
The purchase of 600 W. Chicago Avenue, one of two Chicago properties remaining in Equity Commonwealth’s portfolio, is the latest in a string of high-profile projects for Sterling Bay, who recently acquired a 17.8-acre Fleet Management site and a 2.2-acre site as part of their Lincoln Yards development on Chicago’s north side, closing both deals at $104.7 million and $11.45 million, respectively. Sterling Bay is also currently developing McDonald’s new global headquarters building in Chicago’s Fulton Market district.
About Sterling Bay
Sterling Bay is a market leading real estate investment and development firm with expertise across the full spectrum of design, construction, leasing, asset management and hospitality. Sterling Bay’s portfolio consists of over 10 million square feet and features award-winning adaptive reuse and build-to-suit headquarter projects for market leaders like Google, Gogo, Uber and McDonald’s Corporation. With a current pipeline of over $10 billion in development and a commitment to engaging communities, the firm is one of the fastest growing and well-respected organizations in real estate. For more information please visit www.sterlingbay.com.
About J.P. Morgan Global Alternatives
J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. With more than $130 billion in assets under management and over 800 professionals (as of December 31, 2017), we offer strategies across the alternative investment spectrum including real estate, private equity and credit, infrastructure, transportation, liquid alternatives, and hedge funds. Operating from 23 offices throughout the Americas, Europe and Asia Pacific, our independent alternative investment engines combine specialist knowledge and singular focus with the global reach, vast resources and powerful infrastructure of J.P. Morgan to help meet each client’s specific objectives. For more information: www.jpmorganassetmanagement.com.