Harrison Street Real Estate Capital’s lease to move its headquarters to Chicago’s Fulton Market continued an expansion of the fast-growing former meatpacking district, but it was unusual in another regard: The lease helped kick off one of the few major office developments anywhere in 2023.
The real estate investment firm sought a new Chicago space with features including branding, a private entrance and lobby, outdoor and collaborative spaces and nearby amenities. Harrison Street chose to anchor the 11-story, 409,000-square-foot development planned by Chicago firms Fulton St. and JDL Development, with Shanna Khan’s SNK Capital the lead equity investor.
Harrison Street signed a lease agreement in 2022 that was contingent on the developers landing a loan for the 919 W. Fulton project, at a time when such financing was scarce nationally amid weak office demand, rising interest rates and other hurdles. Completion of the lease was delayed for eight months while a financing package was restructured several times.
The project broke ground late last year after $233 million in debt was finalized with Bank OZK and Manulife Investment Management.
The lease was voted a CoStar Impact Award winner by an independent panel of industry professionals.
About the Project: Harrison Street is moving from the River Point office tower along the Chicago River, just east of Fulton Market. The 919 W. Fulton building, scheduled for completion in 2025, also will include a restaurant from Gibsons Restaurant Group. Harrison Street’s lease is for 112,004 square feet.
What the Judges Said: "Any lease that anchors a new development at this part of the real estate cycle is impactful,” said Michael Morrone of Stream Realty Partners.
UPDATED They Made It Happen: The tenant was represented by Colliers International brokers Dan Arends, Alain LeCoque and Ryan Barr. The landlord was represented by Fulton St. CEO Alex Najem and Madison Rose brokers Matt Pistorio and Adam Pines.
CoStar Market Manager Kristen Davis contributed.