R2 & Walton Street Pay $86M for Loft Offices

Chicago investors R2 Companies and Walton Street Capital snagged six loft office buildings in Chicago’s West Loop, South Loop and River North. The duo paid seller Loft Development $86 million for the 449,000 square-foot, vintage portfolio. The seller was represented by Susan Tjarksen with KIG CRE.

Loft Development, headed by Owen Deutsch, is selling off its properties. The most current sale leaves Deutsch and his company with two self-storage buildings, which are under contract. Deutsch indicated he wanted to sell his assets now, as long as property values are high, and spend more time traveling with his wife.

The new owners plan upgrades for the portfolio, which is 93% leased. The goal is to push rents.

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