Real estate investment firm R2 Companies purchased $86 million portfolio sale of six vintage office buildings and three land sites in downtown Chicago.
KIG brokered the sale of the properties, located throughout the West Loop, Greektown, River North and Printers Row, from Chicago-based Loft Development Corp.
Built between 1883 and 1904, the properties are collectively 90.8 percent occupied, with an average of 3.9 years remaining on existing leases. The properties include:
The 94,738-square-foot, 14-story Pontiac Building, 542 S. Dearborn St., in Chicago’s Printers Row neighborhood. The mixed-use office and retail building includes notable tenants like Potbelly Sandwich Works, Chase Bank and Wes Management Services. The building also houses numerous law practices due to its proximity to the Dirksen Federal Building, Kluczynski Federal Building and MCC Chicago.
The three West Loop properties included in the portfolio consist of: A seven-story loft office building at 118 S. Clinton St. The 64,303-square-foot building features a renovated lobby and large, flexible floor plans. Notable tenants include Subway, Dylan’s Bar and Grill, Clark Dietz Inc. and Iowa Pacific Holdings LLC; 130 S. Jefferson St., a five-story building that includes 76,249 square feet of retail and office space. Tenants include Physicians Immediate Care, Trisect LLC, and Evans, Lowenstein, Shimanovsky & Moscardini Ltd.; and 901 W. Jackson Blvd., a five-story, 43,000-square-foot retail and office building features a Terrazzo-floored lobby and private parking lot. Jak’s Tap, a tenant for nearly 20 years, occupies 9,222 square feet on the ground level. Other tenants include Endurance Warranty Services LLC and Knell & O’Connor P.C.
In addition, 641 W. Lake St., a five-story, 108,739-square-foot loft office building at the intersection of Lake and Desplaines streets in Greektown, includes a billboard, private parking and loading dock access, among other amenities. Tenants include the Chicago Literacy Alliance, DuoDesign LLC and Rocketmiles.
And 445 W. Erie St. in River North is a two-story, 52,905-square-foot retail and office building, featuring an atrium lobby and exposed brick and timber. All first and second floor suites have a mezzanine, private bathrooms and mini kitchens. Tenants include Logical Media Group, Olson Communications Inc. and TempoBD.
As part of the acquisition, R2 also acquired the following land sites:
- Randolph/Desplaines – West Loop: Located adjacent to 641 W. Lake St., which was also acquired by R2, this 12,480-square-foot parcel is currently utilized as surface parking lot. It is zoned DX-7, which allows for mixed-use development.
- 708 W. Wayman St. – West Loop: Bordering the Kennedy Expressway, this 53,384-square-foot lot includes parking for 157 vehicles and is partially leased to a parking operator. DX-5 zoning permits mixed-use development.
- Peoria/Green – Greektown: Located between Adams Street and Jackson Boulevard, this 16,709-square-foot lot includes 43 surface parking spaces and is currently used by 901 W. Jackson Blvd. tenants. It is currently zoned DS-3, which allows for warehousing and small business use.
Loft Development Corp., was represented by KIG Principal and Managing Broker Susan Tjarksen