Origin Investments and Randolph Street Realty Capital have sold Lux24, a 73-unit apartment building in Chicago’s West Loop, for approximately $35 million, or more than double the $16.75 million acquisition price.
The partners owned the building at 24 S. Morgan St. for less than three years. It was sold to a private investor.
Origin and Randolph Street acquired Lux24, formerly Pure Condominiums, out of foreclosure in June 2013 as a 67-unit, failed condominium project. At the time of acquisition only 38 of the units had been built out and four units had been sold.
Yet Origin and Randolph Street saw promising signs in the neighborhood. A new $40 million CTA station had opened in May 2012. City Winery, a vibrant music venue and restaurant, opened in August 2012.
By May 2013, developers had secured financing to transform a vacant, vintage building near Lux24 into a Soho House, an upscale, members-only club and hotel. Then, a month later and the same month Origin and Randolph Street acquired the property, Google announced it would move its Chicago headquarters to the West Loop.
Immediately after buying the property, the partnership embarked on an aggressive turnaround, which included rebranding the property, completing the construction of 35 units, converting the units from condos to apartments, buying back the four condo units, creating seven additional rental units, relocating the building’s fitness center and leasing ground floor space to Athletico.
Danny Spitz of Baum Realty represented the buyer.