Murphy Development closes on Fulton Market office project site, gets $35M loan

The 7-story office tower at 318 North Carpenter Street is on track to be completed next year

Chicago /
Feb.February 08, 2019 03:30 PM

Murphy Development Group CEO John T. Murphy and a rendering of 318 North Carpenter Street

Murphy Development Group closed on the purchase of a former meatpacking warehouse across the street from Google’s Fulton Market offices, putting the developer in position to begin building a seven-story office tower on the site.

A joint venture between the developer and Creek Lane Capital, an investment group affiliated with Walsh Construction, bought the property at 318 North Carpenter Street from New York-based Madison Capital, Murphy Development Group CEO John Murphy said. He did not disclose how much they paid, but Cook County property records show it was about $7.6 million.

Murphy took out a $35.4 million loan for the project from CIBC Bank, according to an announcement from MB Real Estate, which is overseeing leasing and management of the building.

The deal between Murphy and Madison Capital was first reported in September.

The building is set to include 90,000 square feet of office space, 10,000 square feet of ground-floor retail, a 9,000-square-foot rooftop deck and below-grade parking. Walsh is the general contractor.

The developer has not yet announced any tenants for the building, but Murphy is “already being bombarded by requests” by potential users, he said Friday.

“We almost have the entire building accounted for, which shows you what kind of market it’s been,” Murphy said.

The development will join a cluster of new office buildings planned around the Morgan CTA Green Station, as demand for work space increasingly shifts to the West Loop.

Developers including VequityTishman SpeyerSterling Bay and Shapack Partners are all planning major office developments within a short walk of Google’s midwest headquarters.

Murphy expects to begin demolishing the former Sam’s Meat warehouse within the next two months, he said. The building is projected to be completed by mid-2020.


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