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| 1K Fulton Office Building, River West Fulton Marketplace Submarket, Chicago, IL |
Chicago, IL, July 1, 2016
– American Realty Advisors announced the acquisition of 1K Fulton, a Class A office asset located in the heart of Chicago’s
highly sought-after amenity rich River West Fulton Marketplace submarket.
The complex consists of a 531,190 sf creative
office and ground floor retail building, including a ten-story fully
re-developed cold storage facility annexed to a newly built six-story building.
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| Martha Shelley |
1K Fulton, which opened in
late 2015, is currently 97% leased to a number of high profile tenants,
including Google, which has leased approximately two-thirds of the office
space.
According to Martha Shelley, American’s Senior
Portfolio Manager, securing an asset of this nature with long-term leases to
high quality tenants in one of the most vibrant submarkets of Chicago is a
significant accomplishment, and furthers the firm’s investment objectives.
“American has continued to
position its portfolios defensively, investing in true core assets in major
markets and highly dynamic submarkets across the country.
"We believe that this is the most effective
approach at this point in the market cycle, and the 1K Fulton acquisition is
reflective of our strategy,” noted Ms. Shelley.
“We were attracted to this asset because it
has long-term leases with quality tenants, such as Google. We anticipate that this property will remain
a key driver of the continued growth of the River West Fulton Marketplace over
time given the abundance of street level amenities, immediate proximity of
public transportation, new hotels, and housing adjacent to this asset.”
Shelley continues, “This
burgeoning submarket is attracting a diverse base of tenants, including
technology companies drawn to the area’s unique and highly appealing nature.
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| Ray Kivett |
“We expect that it will
continue to be attractive to future tenants and generate stable returns for our
investors. We are focused on making sure that our tenants and their employees
have the most attractive amenities within and around the building as we
continue to partner with companies to attract strategic employee talent. The
Fulton Marketplace area is in the early stage of a major transformation into
one of Chicago’s premiere live-work-play neighborhoods.”
Ray Kivett,
American’s Managing Director, Investments, stated, “This acquisition fulfills
all of our criteria: superior location, great tenants, and high-quality
construction and amenities. In addition, average current in-place rents are
approximately 15 percent below market, which supports the purchase price of
$257 million, providing the opportunity for American to increase cash flow and
returns for investors.”
“1K Fulton represents the acquisition of a
high quality cornerstone asset within one of Chicago’s most vibrant areas which
is only in its formative period.
"Over the long run, we anticipate that this
asset and its immediate Fulton Marketplace neighborhood will continue to grow
its prominence in the overall fabric of the Chicago market,” noted Kivett. “The recent news about McDonald’s corporate
headquarters relocation to this area in order to attract high quality employee
talent, coupled with the new boutique hotels under construction nearby, and the
area’s thriving restaurant, retail, and nightlife business all support the
thesis that this is an 18-hour location.”
“The strength of this
growing submarket, along with the investment grade anchor tenant at 1K Fulton,
creates an opportunity for long-term stabilized value for our investors,”
Kivett added.
The seller, Sterling Bay,
was represented by David Knapp and
Stephen Livaditis of Eastdil Secured.
For a complete copy of the company’s news release,
please contact:
Lexi Astfalk / Jenn Quader
for American Realty Advisors
Brower, Miller & Cole
(949) 955-7940, LAstfalk@browermillercole.com
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