Two Chicago Office Buildings Sell for $28 Million
Investors acquired the two office properties in September following a foreclosure action on the previous owner.
Updated on Oct. 28, 2026 in Commercial
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In September 2026, R2 and Cubed Realty acquired two Chicago office buildings for $28 million following a foreclosure. The deal marks a return for R2, which originally owned the properties over a decade ago.
Why it matters
The acquisition reflects a shift in commercial real estate where loft office spaces are increasingly valued due to rising construction costs and restrictive zoning policies. This purchase highlights how investors are repositioning assets previously held by distressed owners.
R2 and Cubed Realty paid $28 million for 224 North Des Plaines and 900 North Clark Street. This follows a 2024 foreclosure complaint of $39 million filed against the previous owner, Shopoff Realty Investments.
The players
R2
A Chicago-based real estate investment firm that specializes in acquiring and repositioning urban commercial loft properties.
Cubed Realty
A real estate investment partner that collaborated with R2 to acquire the two office buildings.
Shopoff Realty Investments
A previous owner of the properties that faced a $39 million foreclosure complaint in 2024.
Slate Asset Management
An investment firm that held the foreclosure complaint against the prior owner of the office buildings.
The details
The buildings were acquired out of foreclosure from Slate Asset Management, effectively resetting their valuation after a peak of $38 million in 2016. R2 favors these loft-style office properties because the high cost of new construction and local zoning hurdles make creating comparable new inventory difficult. By re-acquiring these assets, the partnership leverages existing structures rather than initiating new, high-cost development projects.
Timeline
2012-2013: R2 initially purchased the properties.
2016: The buildings were sold for $38 million.
2022: Shopoff refinanced the properties for $28 million.
2024: Slate Asset Management filed a $39 million foreclosure complaint.
September 2026: R2 and Cubed Realty purchased the buildings for $28 million.
The Home Front
This acquisition highlights the ongoing trend of Chicago office building foreclosures driven by the commercial property value reset. The deal marks a departure from recent cycles where buyers prioritized new construction over retrofitting existing historic loft inventory.
Local property owners should note that commercial investment patterns often influence neighborhood development and future zoning adjustments. Renters and business owners in the Fulton Market and River North areas should monitor these properties for potential renovation activity.
The takeaway
Commercial property investors are currently prioritizing the acquisition of existing loft buildings due to the high costs associated with new construction. Interested parties should keep track of local tax assessments for 224 North Des Plaines and 900 North Clark Street to monitor neighborhood impacts.
Further reading
For broader trends in the local market, visit Chicago Commercial.
Source note: This article includes information reported by The Real Deal New York.
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