The Real Deal Chicago

Marc Realty JV secures $94M acquisition loan for River City deconversion

The Wolcott Group is partner on the deal, in which part of the $94M financing will pay for major renovations in switch to rentals
By John O’Brien |
Research by Haru Coryne
January 10, 2019 01:00PM

From left: Andrew Goodman, Jonathan Gordon, Ari Golson, and David Ruttenberg (Credit: iStock)

Marc Realty Capital and The Wolcott Group secured a $94 million acquisition loan for their deconversion and overhaul of the former River City condo building.

The partners completed the biggest deconversion in Chicago history last month when they closed on the $90.5 million deal for all 449 units in the South Loop building at 800 South Wells Street.

A venture of New York-based real estate lender Silverpeak Argentic provided the loan, which will be used for the acquisition and major renovations planned.

Chicago-based Marc Realty and Wolcott declined Thursday to say how much of the loan will go toward the overhaul.

But in announcing the closing of the deal last month, the new ownership group said it plans a full renovation of the building’s lobby and will add multiple lounges, a new fitness center, co-working spaces, a dog run and gathering spaces. The apartments will be modernized, and the group said it will renovate the more than 250,000 square feet of office and retail space in the complex.

Renovations are set to begin soon, with new residents moving in as early as March, the firms said.

The path toward executing the River City deal was filled with years of negotiations and legal wrangling.

During one point in the process, Marc Realty and Wolcott reduced their bid for the complex, saying costly deferred maintenance issues were discovered that they would had to address after acquiring it. They later came back with a slightly higher bid that the condo owners accepted

Joining Marc Realty and Wolcott in buying the building were Ruttenberg Gordon Investments and funds managed by Elliott Management Corporation. Apartments are being designed by Devon Grace Interiors, and Luxury Living Chicago Realty will handle marketing and leasing.