The Real Deal Chicago

Thor Equities builds its portfolio at Fulton Market gateway

The warehouse deal with R2 gives Thor an entire block in the booming neighborhood
April 03, 2018 09:30AM

Renderings of 816 West Fulton Market and Thor’s Joseph Sitt

A Thor Equities venture bought the one-time Isaacson & Stein Fish buildings at the gateway to the booming Fulton Market neighborhood.

The New York-based firm paid $12 million last week for the 26,000-square-foot warehouses from developer R2, a Thor spokesperson confirmed to Crain’s. R2 had acquired the property, located at 800-810 West Fulton Street, for $9 million in 2016 with plans to build retail space there.

Thor Equities previously paid $36 million in November 2016 for the buildings next door, at 816-820 West Fulton Street, with plans for a mixed-use development including a restaurant from country music act Rascal Flatts. That prompted R2 to rethink its plans, believing the entire block would need to have the same owner to maximize its potential, R2 Principal Matt Garrison told Crain’s.

The deal adds to Thor Equities’ holdings in the area, while R2 remains a big player in Fulton Market as well, despite the sale.

The two developers are among many looking to cash in on the trendy neighborhood that used to be a meatpacking and food service district. McDonald’s is set to open its new headquarters there in a building developed by Sterling Bay, which also brought the Google Midwest HQ to the neighborhood.

Tucker Development and Related Midwest recently tweaked their plans for a condo tower in the 900 block of West Randolph Street, lowering its proposed height to 495 feet from 570 feet, but maintaining the overall square footage.

ZOM Living and Verde Communities plan a 357-unit apartment complex with retail in the 900 block of West Washington Boulevard, and Taris Real Estate recently secured a $23 million loan to finish its pricy condo development, also in the 900 block of West Washington. [Crain’s]John O’Brien