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Key Points
R2 Cos. acquired the 46,150-square-foot distressed loft office building at 225 West Illinois Street for $4.65 million, which is approximately $100 per square foot.
The seller is tied to State Farm Life Insurance, the lender that took over the property from the previous owner, RN Realty, through a deed in lieu of foreclosure following a default on an $8.5 million mortgage.
The purchase aligns with R2's strategy to bet on distressed and discounted boutique offices, which CEO Matt Garrison stated are a low-cost, appealing alternative to larger office towers, with plans to upgrade the lobby, restrooms, and office spaces.