R2 Companies, a real estate investment firm based in Chicago, has recapitalized 770 N. Halsted St. in Chicago for $23.75 million.
The property includes two eight-story historic loft buildings in the River West neighborhood for a total of 149,000 square feet with an affiliated one-acre parcel of land. Tenants include Radius, Inxpo and Northeastern Illinois University.
R2 has completed a lease agreement with Aire Ancient Baths, a Spanish-based spa global locations, scheduled to open next year.
"It took almost 100 years for the property to reach a valuation of $11 million," Matt Garrison, managing principal of R2, said. "Since 2013, we have seen that number more than double. It was time to realize that gain for the existing partnership, including our partner T2 Capital Management. We are very pleased to have generated significant returns for this partnership. We are also excited to invest with York Capital with a long-term view, and believe the value and location fundamentals for the asset remain incredibly strong."
R2 acquired the site in January 2013 for $10.75 million and has completed $4 million in improvements and leasing to reposition the building amid a loft-office boom in Chicago.