CHICAGO—The imminent arrival of Google has thrown a spotlight on the Fulton Market neighborhood, and even New York firms like Madison Capital and ASB Real Estate Investments have decided that the historic meatpacking district presents a remarkable opportunity. The two joined up to buy a four-property portfolio from Birdland Properties, a subsidiary of local meat distributor Economy Packing, a neighborhood fixture for over 80 years. NGKF Capital Markets represented both parties in the transaction.

The 83,516-square-foot portfolio consists of 934-938 W. Fulton Market, 939-943 W. Fulton Market, 312 N. Carpenter St. and 328 N. Carpenter St., plus about 35,000 square feet of additional air space. The neighborhood's transformation began about four years ago when the city decided to construct a Green Line El stop nearby, making it an easy commute for office workers. These properties are all located within a three-minute walk of the new stop.

“Fulton Market is quickly becoming the most interesting neighborhood in the city and developers want to be on the front-end of that transformation to benefit from the turnaround,” says NGKF managing director Gino Tabbi, “At the same time, longtime owners of properties have an incredible opportunity to capture the increasing value.” 

The developer Sterling Bay has led the way in changing the area from meatpacking and food distribution and into a high-tech office hub. It redeveloped the mammoth Fulton Market Cold Storage Building at 1000 W. Fulton into 1K Fulton and brought in Google as its anchor tenant. It also acquired the former MarchFirst Inc. site at 1332 W. Fulton in January 2014.

Furthermore, Soho House hotel debuted a Fulton Market location in 2014 and the Ace Hotel is slated for development later this year. Several restaurants have also recently opened in the area, including Fulton Market Kitchen, The Betty, Formento's, and Momotaro.

Tabbi, senior managing director Andy Gallas and associate director Dominic Soltero represented both parties in the transaction.