CRE N Illinois

West Loop loft office building sells for $13 million

West Loop loft office building sells for $13 million,ph1

Marcus & Millichap announced the $13.1 million sale of a four-story, 30,620-square-foot loft office building located at 1027-1031 W. Madison St. in Chicago’s West Loop. At $436 per square foot, it is one of the highest prices paid on a per-square-foot basis for a multi-tenant loft office building in the neighborhood. The fully leased building is located one block south of McDonald’s new global headquarters, which opened in June.

Stephen Lieberman, director in Marcus & Millichap’s Chicago Downtown office, represented the seller, a private partnership including principals of Schafer Condon Carter (SCC), an independent creative and technology agency. SCC, which occupies the upper three floors, will remain a tenant of the building under a sale-leaseback agreement. Lieberman also procured the buyer, a New York-based, private, family-owned operating company.

“This sale speaks to the tremendous outlook for the West Loop,” said Lieberman. “Passive cash-flowing assets that are well located and poised to sustain stable, long-term growth should continue to perform very well with a national buyer audience. We worked with ownership to time the market in a way that allowed them to realize a significant return on their original purchase basis of $1.6 million in 2010.”   

Built in 1872, the historic property is an official Chicago landmark and comes with a Class L designation. In 2011, the property underwent a $4 million gut renovation that restored its historic façade and fully modernized its interiors. SCC leases floors two through four, while the first floor is occupied by CrossTown Fitness and Madison Bar + Kitchen under long-term lease agreements.