Australian hospitality firm Zagame Corporation bought a Fulton Market luxury apartment complex for $14 million, another sign that investors are turning their attention to the western portion of the neighborhood.
The hotel and casino firm bought the 22-unit building with ground-floor retail at 1342 West Randolph Street from Chicago-based Mo2 Properties, according to Crain’s.
SVN Chicago Commercial’s Scott Maesel and Adam Thomas represented Mo2 in the deal.
Mo2 bought the building two years ago for about $11 million and spent more than $1 million upgrading the property and adding two penthouse units, Principal Ken Motew told Crain’s.
The deal is the latest trade in the western portion of Fulton Market, which has yet to see the frenetic development as the eastern portion but has been drawing more interest. Fulton Market pioneer Shapack Partners, for instance, recently bought a 27,000-square-foot property 224 North Ada Street for $8.5 million, its first pickup west of Morgan Street.
And Sterling Bay also plunged into the western half of the district when it paid $2.2 million for 2.2 acres at 1300 West Carroll Avenue, a deal that could lead to a new Metra stop in the neighborhood.
And the city is proposing a change that could open up an area immediately west of Fulton Market to bigger buildings and more uses that current zoning rules prohibit, accelerating the spread of development. [Crain’s] — John O’Brien