R2 and Cubed Realty Buy Chicago Office Buildings
The firm reacquired two properties in September 2026 after they were involved in a $39 million foreclosure complaint.
Updated on Oct. 28, 2026 in Commercial
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R2 and Cubed Realty finalized the purchase of two Chicago office buildings for $28 million in September 2026. The properties, located at 224 North Des Plaines and 900 North Clark Street, were acquired following a 2024 foreclosure case.
Why it matters
The deal highlights the difficulty of constructing new loft office space given current zoning policies and rising development costs. This acquisition reflects a strategic move to secure existing assets rather than pursuing new builds in a challenging market.
R2 and Cubed acquired 224 North Des Plaines and 900 North Clark Street for $28 million. The prior owner, Shopoff Realty Investments, previously purchased the assets for $38 million in 2016.
The players
R2
A real estate investment firm that focuses on loft office properties and recently expanded its Chicago portfolio.
Cubed Realty
A real estate company that partnered with R2 to acquire office assets in the Chicago market.
Slate Asset Management
An investment firm that filed a foreclosure complaint against the former owner of the buildings.
Shopoff Realty Investments
The previous owner of the office buildings that faced foreclosure proceedings.
The details
The buildings were acquired out of foreclosure from Slate Asset Management, which had previously filed a $39 million complaint against the prior owner. R2 is familiar with the assets, having held ownership of the properties between 2012 and 2016.
Timeline
2012-2013: R2 initially purchased the properties.
2016: R2 and Goldman Sachs sold the buildings for $38 million.
2022: Shopoff refinanced the properties for $28 million.
2024: Slate filed a $39 million foreclosure complaint against Shopoff.
September 2026: R2 and Cubed purchased the properties for $28 million.
Culture Shift
This acquisition underscores a broader trend where developers prioritize existing loft structures over new construction due to high development costs. It signals a shift toward reusing urban office space rather than attempting new ground-up projects under current zoning constraints.
The deal signals potential stability for the businesses currently leasing office space within these specific buildings. Residents in the River North and Fulton Market neighborhoods may see continued activity at these sites as the new owners transition operations.
The takeaway
Investors are increasingly looking toward distressed properties to expand their portfolios in high-demand urban neighborhoods. For businesses looking for office space, this cycle of ownership changes may offer more competitive lease opportunities in established buildings.
Further reading
Learn more about the local market in the Chicago Commercial section.
Source note: This article includes information reported by The Real Deal New York.
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