CHICAGO—R2 Cos., a Chicago based real estate investment firm, and AIMS Real Estate, a business unit of Goldman Sachs Asset Management, have formed a strategic partnership to recapitalize R2's office property at 1165 N. Clark St. in the Gold Coast. R2 officials say the area can compete with office submarkets like River North since it has similar amenities and even better transportation options.

R2, formerly known as South Street Capital, acquired the 100,000 square-foot building in July 2013 for about $11.3 million, according to Cook County property records. It has already completed significant renovations to the building and signed ten new leases including ones for Gold Coast Bank and Assemble™, a Chicago-based shared office operator. A CVS Health occupies the property's retail portion at the corner of Clark St. and Division St.

“I don't think of this as a discount location,” Max Meyers, chief investment officer at R2, tells GlobeSt.com, although it does have better pricing than River North. “We think it has long-term value because people love officing up here. From a transportation standpoint, it's arguable stronger than River North.”