CHICAGO—As reported yesterday in GlobeSt.com, SterlingBay Companies just entered into a partnership with New York-basedJ.P. Morgan Asset Management that makes the lattera co-developer of the many Near West Side buildings Sterling hasbought since 2012. And today Sterling principal JohnGavin tells GlobeSt.com that such a partnership wasessential.

Renovating the more than 20 assets, which includes the giantFulton Market Cold Storage building at 1000 W.Fulton and Fulton West, a portfolio of existing and partially completed office, retail andparking facilities, would run up about $750 million inproject costs, far beyond Sterling's capacity if it were to go italone. “It was a very logical step for us to identify aninstitutional joint venture partner that allows us to execute theportfolio.”

What makes this partnership a bit unique, he adds, was thatSterling bought all of these assets before forming a partnershipwith a firm with really deep pockets. But it became imperative toquickly buy up the desirable assets in the rising neighborhood oncethe company generated national headlines last June by recruitingGoogle as its anchor tenant for 1000 W. Fulton,now known as 1K Fulton.