Chicago Office Buildings Sold for $28 Million
The purchase of two office sites highlights shifting valuations for commercial space in River North and Fulton Market.
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 to these specific properties for R2, which originally held the assets between 2012 and 2016.
Why it matters
This transaction reflects the current market valuation for Chicago loft office spaces, which R2 views as difficult to replicate under existing development costs and zoning restrictions. It highlights the shifting ownership of commercial assets as properties transition through foreclosure processes.
The $28 million purchase price for the two buildings follows a 2024 foreclosure complaint of $39 million filed against the previous owner. This is a significant discount from the $38 million paid for the same properties in 2016.
The players
R2
A commercial real estate firm that invests in and manages office properties in Chicago.
Cubed Realty
A real estate investment firm that partners with R2 on Chicago commercial acquisitions.
Slate Asset Management
An investment firm that held the foreclosure complaint against the prior property owner.
Shopoff Realty Investments
The previous owner that purchased the buildings in 2016 and faced foreclosure in 2024.
The details
R2 and Cubed Realty acquired 224 North Des Plaines in Fulton Market and 900 North Clark Street in River North out of foreclosure from Slate Asset Management. The firm identifies these loft-style office buildings as valuable assets because current zoning rules and construction costs make new builds of this type challenging. The purchase follows a series of recent acquisitions by R2 in the city, including a $17.6 million building purchase in July 2026.
Timeline
R2 first owned the properties between 2012 and 2013.
Shopoff Realty Investments acquired the buildings for $38 million in 2016.
The buildings were refinanced for $28 million in 2022.
Slate Asset Management filed a foreclosure complaint in 2024.
The final purchase by R2 and Cubed Realty occurred in September 2026.
Money Landscape
This deal underscores the ongoing correction in Chicago commercial real estate values as properties move through the 2024 foreclosure cycle. It serves as a reminder of how high interest rates and development costs continue to reshape asset ownership in the city's core neighborhoods.
While this commercial sale does not directly alter household budgets, it signals how institutional investors are currently valuing Chicago office space. Local business owners and commercial tenants should monitor these ownership changes as they may influence future lease terms and property management priorities.
The takeaway
The return of R2 to these properties at a lower price point illustrates how some investors are capitalizing on distress in the office market. Keep an eye on commercial trends in your local district to understand how shifting property ownership may affect the business environment in your area.
Further reading
For more on market activity, visit the Chicago Commercial section.
Source note: This article includes information reported by The Real Deal New York.
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