Construction cranes have towered over Chicago’s Fulton Market for years, and the sale of one of the largest remaining parcels of land could pave the way for one of its biggest developments yet. The mixed-use plan could lead a westward expansion of the former meatpacking district.
The property: 89,000 square feet of land in the 1200 block of West Fulton in Chicago’s Fulton Market district, at the intersection of Fulton and Racine Avenue.
The sale: Chicago developer Fulton Street Cos. paid $39 million, or about $438 per square foot of land.
The broker: Dominic Soltero of @properties represented the sellers.
The deal: Owners of low-rise buildings previously used by wholesaler Four Star Foods and paratransit provider CDT hired Soltero to market the neighboring properties as a single redevelopment opportunity. The site, just over 2 acres, was one of the largest remaining after a yearslong construction boom in the former meatpacking district, which has filled with office and residential towers, boutique hotels and shops. The Fulton Market district is west of the Loop business district, near the Kennedy Expressway.
The backstory: Soltero previously worked on a larger deal involving four sellers and the entire block, which another developer had a contract to buy in recent years. That slow-moving deal stalled for good during the pandemic, before the smaller deal was put back on the market for sale. Fulton Street won out by offering a quick closing with no zoning contingencies. That was particularly important amid concerns about the effects of supply chain disruptions, construction costs and rising interest rates on new developments, Soltero said. Structures on the site are expected to be demolished for a redevelopment.
What’s next: The buyer plans to seek zoning approval from the city for a $600 million mixed-use development that would be one of the most ambitious ever undertaken in the neighborhood once known for forklifts, delivery trucks and meatpackers’ blood-soaked smocks. Fulton Street has said towers could rise as high as 600 to 700 feet, becoming the tallest in the area. Preliminary plans include an apartment and hotel tower and smaller office and life sciences structures, with about 1.5 million square feet of space combined. Fulton Street’s investors include residential developer Waterton, Harrison Street co-founder and CEO Chris Merrill, and Shanna Khan, daughter of Jacksonville Jaguars and Flex-N-Gate owner Shadid Khan.
Why it matters: The project could continue pushing development west, with the eastern portion of the district built up over the past few years. Fulton Market’s economy has remained a bright spot even as other areas of the city, including the Loop central business district, have struggled to bounce back from the pandemic.
What they’re saying: “This is only going to recharge the neighborhood and give it extra juice,” Soltero said. “There’s going to be an increased focus on the western side. This confirms that you’ve got to go west, and I feel like it’s going to open the floodgates for more tenants and investors. It’s going to continue filling in.”
Fun fact: Fulton Market is the fastest-growing urban office market in the country over the past five years, with no letup in sight. Notable office tenants include the global headquarters of McDonald’s and Mondelez International, and the Midwest headquarters of Google.
CoStar’s Impact Awards highlight the commercial real estate transactions and projects that have transformed their markets over the past year. The winners are chosen by independent panels of industry professionals who work in the markets they judge. A list of judges can be found here and the criteria for selecting winners can be found here.