T
he Fulton Market District is experiencing a shift in land values as commercial tenants and residents continue to leave the Loop. A recent $30 million acquisition by Sulo Development of a Sterling Bay-owned property has set the stage for a three-tower condominium complex with up to 243 residential units, the largest condo project ever proposed in the area. The vacant property at 1325 West Fulton Street sold for $400 per square foot, a significant increase from the $30 per square foot paid by Sterling Bay when it acquired the nearly 2-acre site in 2014.

    However, this price is lower than what was seen pre-pandemic, when buyers were willing to pay up to $600 per square foot due to robust office demand. The sale reflects a change in market conditions, with interest rates, high construction costs, financing difficulties, and carrying costs contributing to the decrease in land values. "It's just reality," said Scott Maesel, a broker with SVN Chicago Commercial.

    Sterling Bay is selling off several Fulton Market holdings, including a 33,700-square-foot parcel at 1200 West Carroll Avenue and a 48,000-square-foot development site at 345 North Aberdeen Street. Sulo Development plans to transform the acquired property into a trio of residential buildings rising up to 538 feet, with construction expected to begin soon. The project will be located across the street from a 29-story apartment building currently under construction by Shapack Partners and CRG.