Two weeks post its grand opening, the Chicago Guinness Open Gate Brewery building has been listed for sale. Priced over $20 million, the Chicago Tribune reports that the West Loop district property at 901 W. Kinzie Street is owned by Chicago real estate developer Fred Latsko, who is using commercial brokerage firm JLL to facilitate its sale.
Unlike the other Guinness Open Gate Brewery locations in Dublin and Baltimore, which are owned by the Guinness brand, to buy this property presents a rare opportunity. The brewery's spokesperson clarified that although the property is for sale, the business is not, and Guinness plans to stay in the West Loop community remain unwavering.
This Chicago brewery, announced in 2021, to begin service on Sept 28th, proffers 12 to 16 varieties of beer, a full-service restaurant, and a bakery. The Chicago Tribune also highlighted Guinness's commitment to donate 10,000 loaves of bread annually to the Greater Chicago Food Depository.
The sale of this 15,000-square-foot property, which was once the Pennsylvania Railroad Depot, is expected to fetch $20 million or more. Despite the current economic climate, making property sales a hurdle, attractions located in booming areas like the Fulton Market district remain resilient.
The Time Out Market food hall building in Fulton Market sold earlier this year for $35.75 million. This indicates a strong demand for unique properties in this area. Equally, a CoStar analysis reported it to be the fastest-growing urban office market in the U.S., making it highly sought-after by real estate investors nationwide and worldwide.
Guinness's parent company, Diageo, revealed plans to operate the West Loop brewery in September 2021, following their first U.S. brewery opening near Baltimore three years prior. The original St. James Gate Brewery in Dublin has been brewing since 1759. The trend breweries setting up in exclusive spaces near sports and entertainment venues is quite apparent, and the Chicago location is along these lines.
Regardless of who buys the brewery, it's important to note that operations will continue, and a ten-year lease will stay in effect, ensuring business continuity post-sale. CoStar News also shared the brewery's annual operating income projections to be over $1 million.
The sale announcement has stirred the local populace and investors alike, underscoring the resilient demand for special properties in high-growth areas despite the current property market's challenges. Given the brewery's status as a new tourist hotspot in Chicago, an enthusiastic interest from potential buyers is expected. Nonetheless, the identity of the new owner and how they might influence the brewery's future trajectory remains to be seen.
