Loop Office-to-Apartment Conversion Changes Hands at Sheriff's Sale

A Cook County sheriff’s sale closed Nov. 3 on 330 S. Wells St., the Loop office tower LG Development Group converted into apartments, according to Crain’s Chicago Business, which reported an unnamed investor took over the property at the sale. Our Oct. 23 report flagged the auction as pending after a Cook County judge ruled LG Group-tied entities had defaulted.

Crain’s headline did not name the buyer in the portion we could access. Bisnow reported Oct. 20 that a Prime Finance affiliate had sold the defaulted note on the building to 330 S Wells Holdings LLC, an entity tied to Jenkintown, Pennsylvania-based multifamily owner Lindy Communities, for $15 million, a 47% discount to the note’s face value. Bisnow reported 330 S Wells Holdings as the only reported bidder heading into the sale, holding the sole credit-bid position against the note balance. Crain’s reporting a completed takeover is consistent with that position, though we have not independently confirmed the buyer’s identity beyond Bisnow’s reporting.

Why it matters

The 330 S. Wells tower is a test case for Chicago’s office-to-residential conversion wave. LG Development Group and Marc Realty converted the roughly 137,000-square-foot former office building into 132 apartments, 24,000 square feet of refurbished workspace and first-floor retail in 2019. A conversion changing hands through foreclosure, rather than a voluntary sale, is a warning for anyone underwriting the next Loop retrofit: the debt matured and defaulted six years after the conversion opened.

The numbers

Prime Finance sued an LG Development Group affiliate in Cook County Circuit Court’s Chancery Division in May 2025, after a 2021 refinance of $28.2 million, itself refinancing a 2018 Regions Bank construction loan of $27 million, matured in February 2025 and went into default. No Chancery case number was reported for the suit. Cook County Judge Jean Cocozza ruled in September 2026 that the entities had defaulted and foreclosure could proceed, with roughly $33.3 million owed as of early September including accrued interest. The $15 million note sale to 330 S Wells Holdings represented a 47% discount to that face value.

What’s next

Illinois foreclosures proceed through the courts, not the trustee-sale process used in some states, so the Nov. 3 sheriff’s sale was the mechanism required to transfer title after Judge Cocozza’s ruling. Whether the apartments stay occupied through the transition, and whether Lindy Communities’ affiliate confirms its role publicly, are the open questions. More at the Chicago market hub.