CHICAGO—Martin Capital Group recently sold the 58,800-square-foot 1900 W. Walnut St. in Chicago's Fulton Market District to Mark IV Realty for $11.25 million, a sign that values are escalating significantly even in neighborhoods about one mile east of where Google will soon relocate.

“It's definitely a record for this neighborhood,” Michael L. Senner, executive vice presidents with Colliers International's Chicago-based industrial advisory group, tells GlobeSt.com. Senner and Vern F. Schultz of Colliers represented Martin Capital Group.

“It's a big number,” Senner adds, even though Google's 1K Fulton to the east at 1000 W. Fulton St. “is really the big driver. Everything is extraordinarily active and prices there are off the charts.”

Colliers marketed the property nationally, but “the people who showed the most interest were local investors who really understood the very limited amount of similar inventory in that area.” Originally designed as a multi-tenant building, the one-story 1900 W. Walnut has been 100% leased since its 2008 completion to Matthews International, a digital imaging studio, and is the only 24' clear, modern, precast building in either the West Loop and Fulton Market submarkets. “There is simply no competition.”

The closeness to downtown and the cachet brought by Google should help the neighborhood flourish. Senner points out that Goose Island recently opened up a taproom at its brewery at 1800 W. Fulton, just one example of the new local amenities that will allow companies draw in younger workers.

“This is an irreplaceable infill location,” adds Senner. “The building's location provides direct access to Downtown Chicago, as well as proximity to the most vibrant residential neighborhoods in Chicago. There are no available sites that would be appropriate for a competitive building in that submarket, and most of the existing properties are of an older vintage and inferior quality.”