The Real Deal Chicago

Investment manager buying majority of Sterling Bay West Loop office building

Manchester Capital acquires 64K sf of the property, marking its entrance into Chicago market
February 06, 2019 09:00AM

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