Sterling Bay is scrapping an apartment project in Fulton Market, not far from the former cold storage building the development firm bought over a decade ago and turned into the Google-anchored 1KFulton office building.
Led by CEO Andy Gloor, Chicago-based Sterling Bay has hired JLL brokers to sell the 48,000-square-foot development site at 345 North Aberdeen Street, more than two years after buying the property for $20.8 million, CoStar reported. Brokers Dan Reynolds and Jack Hubbard are representing the listing.
While Gloor’s reason for selling the site rather than building on it is unclear, the developer is working to obtain a zoning change from the city that would allow for increased density and up to 559 units, thus significantly increasing the property’s value.
Last summer, Sterling Bay sold another development site near its $6 billion Lincoln Yards megadevelopment, which is in the midst of a difficult stretch with its current lenders wanting to get out of the project along the Chicago River between Lincoln Park and Bucktown after the developer encountered some delays that it has blamed partly on the city.
Sterling Bay has been searching for a new financial partner to inject more capital into its land holdings as it seeks to bring commercial development to the area.
When the firm acquired the Aberdeen Street site, it was still home to the Cougle Commission poultry processing facility, which was one of the last remnants of the former meatpacking district. Now, high-rise developments are sprouting up all over the neighborhood, boosting surrounding property values. Many food companies, including the former Cougle business, have capitalized on rising property values and relocated.
Sterling Bay’s redevelopment of the former Cold Storage building marked a pivotal moment in Fulton Market’s transformation from an industrial area to one of Chicago’s hottest neighborhoods. Fulton Market emerged as the fastest-growing urban office market in the country in recent years, the outlet said.
The area is exploding with multifamily developments, as well. In September, Sterling Bay revealed plans to build a 29-story apartment tower at 370 North Carpenter Street, fresh off completing another 29-story residential building at 160 North Morgan Street.
Moreover, a joint venture of Shapack Partners and CRG just secured an $84 million construction loan for its planned 29-story, 308-unit project at 220 North Ada Street. The venture is also developing a 37-story mixed-use complex at the former Bridgford Foods plant.
—Quinn Donoghue
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