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McDonald's HQ sells for more than $412 million, a record for Chicago's Fulton Market district

By Ryan Ori, Chicago Tribune on

Published in Home and Consumer News

CHICAGO — McDonald's headquarters building has sold for more than $412 million, in the highest-price property sale ever in Chicago's Fulton Market district.

The sale of the building at 110 N. Carpenter St. was completed Thursday, seller Sterling Bay said.

The Chicago firm developed the 575,000-square-foot building on the former site of Oprah Winfrey's Harpo Studios, where the fast-food giant moved its headquarters from west suburban Oak Brook in June 2018.

The price, $412.5 million, is a record for the former meatpacking district just west of the Kennedy Expressway.

It is the highest sale price for any property in Chicago this year, a year that has seen a slowdown in real estate deals because of the coronavirus pandemic.

"Completing the sale of 110 N. Carpenter in the midst of an uncertain economic market is a testament to the city of Chicago's ability to attract outside investment and secure important capital for its future," Sterling Bay CEO said Andy Gloor said in a statement.

Sterling Bay's statement did not identify the buyer, which the Tribune earlier this month reported is low-profile Normandy Properties. The Pittsburgh-area firm is affiliated with the high-net-worth Snyder family, heirs to late-1800s steel-industry baron William Penn Snyder Sr.

Although it comes during a faltering economy because of COVID-19, it's a relatively low-risk investment because McDonald's leases 490,000 square feet in the nine-story building until 2033 for its corporate offices, Hamburger University training facility and ground-floor restaurant.

 

Sterling Bay and investment partner J.P. Morgan Asset Management bought the site along Randolph and Carpenter streets from Winfrey for $30.5 million in 2014. They are believed to have spent about $250 million redeveloping the property, which is 97% leased.

The previous highest price for a Fulton Market building was the $257 million sale of 1KFulton, which serves as Google's Midwest headquarters, in 2016. Sterling Bay also was the seller in that deal, after gutting and adding on to the former Fulton Market Cold Storage building.

McDonald's headquarters was on the market for sale since February.

Sterling Bay was represented in the sale by JLL Capital Markets brokers Jaime Fink, Jeff Bramson, Bruce Miller, Patrick Shields and Sam DiFrancesca.

McDonald's headquarters is the largest office property sale in Chicago since 2018, when Sterling Bay paid $510 million for 600 West Chicago and $680 million for the two-tower Prudential Plaza complex.

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