626 West Jackson Boulevard with Sterling Bay’s Andy Gloor (left) and Manchester’s Ted Cronin (Credit: LoopNet)
Manchester Capital Management is buying the majority of a Sterling Bay office building in the West Loop, marking its entrance into the Chicago market.
Vermont-based Manchester — an employee-owned investment manager — has a deal to pay $19 million for most of the eight-story building at 626 West Jackson Boulevard that Sterling Bay bought in 2008 for $7.8 million, according to Crain’s. The deal allows Sterling Bay to cash out of the property.
The prolific developer sold nearly three floors of the 108,000-square-foot building in 2009 to Cara Program and Dearborn Capital Management for a combined $8.5 million. Now Manchester is buying the remaining portion, which totals 64,000 square feet.
Manchester’s first acquisition in the local market gives it a foothold in an area of Downtown set to see a flood of new office development. 601W Companies is in the midst of an $800 million redevelopment of the nearby Old Main Post Office that will deliver 2.8 million square feet of new office space, and Riverside Investment & Development plans a new 1.5 million office tower as part of its redevelopment of Union Station.
Cody Hundertmark and Tom Sitz, formerly of CBRE, represented Sterling Bay in the sale. [Crain’s] — John O’Brien