Fred Latsko selling new Guinness brewery in Fulton Market

Liquid courage is on full display, as developer Fred Latsko looks to offload a newly-opened Guinness brewery in Chicago’s Fulton Market District despite rising interest rates drying up commercial real estate deal flow.

Latsko has hired a team of JLL brokers to market the Guinness Open Gate Brewery at 901 West Kinzie Street, just a few weeks after it opened in the humming West Loop neighborhood, CoStar reported.

An official asking price has not been revealed, but a person familiar with the listing expects it to sell for more than $20 million, the publication reported. Latsko and JLL are marketing the offering as a rare opportunity to own one of the Irish brewer’s properties.

“It’s time to pass the torch, or in this case, the tap, to new stewardship, as the only other two Guinness Open Gate Breweries are owned by the brand itself,” Latsko told the outlet.

Guinness currently holds a 10-year lease at the site — formerly a railroad depot building — that generates over $1 million in annual net operating income for the landlord, adding to its appeal among interested buyers.

The listing comes at a time when commercial properties are tough to sell due to rising interest rates, banking uncertainties and other economic challenges. However, unique retail properties in growing commercial property submarkets, such as Fulton Market, have shown resilience in the market, exemplified by the recent $35.75 million sale of the Time Out Market food hall building in the same neighborhood.

Fulton Market has emerged as the fastest-growing urban office market in the country, attracting investors from both the United States and abroad with its expansion into residential and hotel developments.

The JLL team Latsko hired includes Keely Polczynski, Michael Nieder, Mohsin Mirza, John Dettlaff, Caity Tirakian and Alex Moss.

Guinness’s parent company, Diageo, had announced its plans to open the 15,000-square-foot brewery in September 2021, following the success of its first U.S. brewery near Baltimore three years prior.

The Chicago establishment is part of a national trend in which breweries seek prominent locations, including sports and entertainment venues, to differentiate themselves in the competitive alcoholic beverage and brewing industry. The brewery includes a full-service kitchen, taproom, bakery and cafe.

— Quinn Donoghue

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