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Chicago

PE firm finalizing 150K sf lease in Fulton Market

Deal with Harrison Street would allow JDL, Fulton Street to score financing for project

Co-founder, Chairman and CEO of Harrison Street Christopher Merrill and a rendering of 919 West Fulton Street (Fulton Street Cos, Harrison St., Getty)
Co-founder, Chairman and CEO of Harrison Street Christopher Merrill and a rendering of 919 West Fulton Street (Fulton Street Cos, Harrison St., Getty)

Harrison Street Real Estate Capital is making a big move.

The private equity firm is leasing 150,000 square feet of office space in a Fulton Market development, the building’s developer announced Thursday.

It plans to occupy space in the not-yet-built 11-story office building at 919 W. Fulton St., Fulton Street Cos. Founder and CEO Alex Najem told Crain’s. Fulton Street Cos. is a co-developer, along with JDL Development.

Harrison Street is tripling its square footage in Chicago, and the new lease will relocate the company from Downtown to one of Chicago’s most desirable office locations.

Assuming reports are accurate, the company would take five floors of the 470,000-square-foot, $320 million project. The lease would likely give the developers a path to secure financing on the project. Beyond the office portion, the development — called 919 on Fulton — will also include 15,000 square feet of ground-floor retail, which will house a Gibsons restaurant.

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In addition to the 150,000-square-foot lease, Harrison Street will also have a 22,000-square-foot outdoor terrace. Should the deal close, the company would relocate from 444 W. Lake St., a 52-story office building about eight blocks east.

Harrison Street declined to comment.

The lease makes a compelling case for Fulton Market’s continued dominance in Chicago’s office market. While Downtown and other areas of the city continue to struggle to secure tenants after the pandemic normalized remote work, Fulton Market continues to attract new leases.

Harrison Street was founded in 2005 by investor Chris Merrill and former Motorola Chairman Chris Galvin. It’s considered the largest real estate private equity firm in Chicago and has nearly $50 billion in assets under management. The company’s main areas for investment are senior and student housing, self storage and life sciences.

[Crain’s] — Miranda Davis

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Fulton MarketFulton Street Cos.Harrison Street Real Estate CapitalJDL Development