The corporate headquarters of McDonald’s has been sold for $412.5 million, the highest price paid for a Chicago office building this year.
The nine-story building at 110 N. Carpenter St., where McDonald’s is the marquee tenant, was sold to Normandy Properties, a low-profile investment firm in Pittsburgh. The sellers were Sterling Bay, which developed the property, and investors led by J.P. Morgan Asset Management.
A mainstay of the development push into Fulton Market, the full-block building opened in 2018 on the site of what was Oprah Winfrey’s Harpo Studios.
“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,” said Andy Gloor, CEO of Sterling Bay. “We are proud to continue our track record of success in developing properties across the city that deliver critical financial opportunities to our hometown.”
Research published by MB Real Estate showed it to be highest sales price this year for a Chicago office building. Sterling Bay also said it was a record for Fulton Market.
The deal appeared to bring a substantial return to the investors. Records show Sterling Bay and partners acquired the property in 2014 for $167.03 million.
McDonald’s has a long-term lease for about 85% of the 575,000-square-foot building. Its other tenants include Walgreens, FedEx and the Politan Row food hall.
The real estate firm JLL, which advised Sterling Bay in the sale, said fully leased buildings in Chicago’s downtown region remain in high demand by investors despite the pandemic.
Other significant downtown sales this year include 333 S. Wabash Ave. for $376 million and 225 W. Wacker Drive for $210 million, according to MB Real Estate’s data.