CHICAGO — Developer Sterling Bay has a deal to sell McDonald’s headquarters building for about $420 million, in what would be the highest-priced property sale of the year and a record price for the booming Fulton Market district.
An obscure investor from the Pittsburgh area, Normandy Properties, has a preliminary deal to buy the 575,000-square-foot office building at 110 N. Carpenter St., according to people familiar with the deal.
The sale has not been finalized, and it could still fall apart. An exact price could not be determined, but it is believed to be about $420 million. A deal would represent the highest-priced Chicago property sale since COVID-19 all but shut down the downtown economy starting in March.
The sale also would shatter the record for Fulton Market, which in recent years has gone from a meatpacking and food distribution hub to the busiest construction zone in the city. The area just west of the Kennedy Expressway is home to large corporate offices, hotels, residential towers, restaurants and stores.
To date, the highest-priced deal in the area is Sterling Bay’s $257 million sale of 1KFulton, the office building that is Google’s Midwest headquarters, in 2016, according to Cook County property records.
Normandy Properties is buying the McDonald’s building at a time when many investors are worried about the long-term outlook for office buildings, as many employees work from home and some companies look to downsize their space.
But 110 N. Carpenter is seen as a low-risk purchase because the fast-food giant has a lease for nearly the entire building until 2033. McDonald’s leases 490,000 square feet for corporate offices, the Hamburger University training facility and a ground-floor restaurant.