Shapack sell-off: Developer seeking huge payday for Fulton Market office building

Shapack Partners built the office building on spec before fully leasing it last year

Jun.June 05, 2019 04:00 PM
Shapack Partners’ Jeff Shapack and 811 West Fulton Street

Shapack Partners’ Jeff Shapack and 811 West Fulton Street

Months after fully leasing the building, Shapack Partners is now looking for a record payday for one its Fulton Market office properties.

The Chicago firm is seeking a buyer for its 70,000-square-foot building at 811 West Fulton Street, with an asking price of $49 million, according to Crain’s.

Such a deal would pencil out to $700 per square foot, which would make it the second highest price per-square-foot of any Chicago office property sale, Crain’s reported. The record holder is the $707-per-square-foot a Spanish family paid last year for a nine-story office building at 412 North Wells.

A Shapack venture bought the parking lot at 811 West Fulton Market for $2.6 million in 2014 before turning it into an office building. In October, Shapack announced the office property he built on spec was fully leased, thanks to new agreements with a women-focused co-working firm and a venture fund.

In listing the office building at the gateway to Fulton Market, firm founder Jeff Shapack is following a familiar formula of building in the up-and-coming neighborhood and then selling at big price tags.

Shapack jumpstarted the redevelopment of Fulton Market with the 2011 construction of the Soho House, which the developer later sold for $95 million. The developer also raked in $113 million for a luxury apartment building in Fulton Market, and sold a WeWork-anchored office property in the neighborhood for $95 million, according to Crain’s.

[Crain’s] — Joe Ward

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