Sterling Bay selling historic River North building

Sterling Bay is selling the historic River North building home to the new Tao Chicago nightclub and restaurant.

The Chicago-based developer hired Baum Realty Group to market the 34,000-square-foot property at 632 North Dearborn Street, according to Crain’s. Sterling Bay bought the 126-year-old building in 2014 for $11.5 million from the operator of Castle, according to Cook County property records.

Sterling Bay’s hospitality offshoot Four Corners and Madison Square Garden-owned Tao Group spent $25 million renovating the building before the new club and eatery opened in September.

Tao Chicago has a 20-year triple-net lease on the building that comes with “substantial rent increases” throughout the term, according to a marketing flyer for the property. The property benefits from a Class L property tax status as a refurbished Chicago landmark, the flyer said.

Sterling Bay continues to be one of the key players in the ongoing transformation of Fulton Market. [Crain’s] — John O’Brien