Hot Hotel Offering Season: Three Chicago-Area Hotels Offered; Another on the Block

Pictured: The James Hotel, gotten earlier this month by Junius Property Partners in an $83.1 million deal.Hotel homes in downtown Chicago and the suburbs have actually been changing hands and refinancing loans as the industry has actually delighted in a prosperous streak this year, thanks to record tourist numbers and robust business travel. Indianapolis-based private equity company Hotel Capital offered

a suburban residential or commercial property in April and today chose one up in downtown Chicago, a simple 2 months later. In early April, Hotel Capital and ORIX Real Estate Capital offered an Embassy Suites

hotel in Schaumburg to Pearlshire Capital Group for$23.25 million, inning accordance with Prepare County records. The seven-story, 209-room hotel at 1939 N. Meacham Rd., which Hotel Capital bought for$8 million in 2015, swelled Pearlshire’s regional holdings, that include a Hampton Inn & Suites in Downers Grove, and a Holiday Inn Countryside in LaGrange, both Chicago suburbs. Tremont Chicago Hotel.This week, Hotel Capital shelled out$25.5 million for the 135-key Tremont Chicago Hotel at 100 E. Chestnut in the River

North neighborhood, according to Prepare County records. The Tremont, a boutique hotel with a storied history, sits in a prime position in Chicago’s Gold Coast, close to the Stunning Mile, the one-mile stretch of primarily high-end shopping, museums, and restaurants and bars. It’s likewise the home of the initial Mike Ditka’s Dining establishment, a magnet for travelers and even “Da Coach” himself when he’s in town. Hotel Capital picked that residential or commercial property up from Marriott International, the last of a portfolio of Starwood hotels that Marriott was dumping after

its$13.5 billion acquisition of Starwood. Hotel Capital is planning a multimillion-dollar remodelling to the hotel and Ditka’s. Likewise today, Junius Real Estate Partners, a realty financial investment department of J.P. Morgan Property Management, exchanged$83.1 million to acquire the James Chicago hotel at 55 E. Ontario, around the corner from the Magnificent Mile. It was a fire sale by New York City’s Deniham Hospitality, which unloaded the money-losing 297-room home it bought at the start of the economic crisis for $136.6 million, according to Cook County records. That was then a record-high price for a Chicago hotel. The home was $82 million in debt, inning accordance with the Hotel Management website. Deniham began shopping the property in December, soon after another James hotel, this one in New York owned by PGIM Real Estate, was offered to Thor Equities for$66.3 million. The James Chicago sale consists of the website of Primehouse, an effective restaurant developed by celebrity chef David Burke. The steak house closed late last year after 11 years in the hotel when Burke transferred to New York. Elsewhere in River North, Bixby Bridge Capital refinanced the Kinzie Hotel, 20 W. Kinzie, with a$30.5 million loan with Annaly Capital Management. And the Blackstone Group is shopping the 354-key Hotel Chicago, 333 N. Dearborn

, inning accordance with Real Estate Alert, an industry newsletter. For the record: Scott Kaniewski of HREC Financial investment Advisors represented Hotel Capital and ORIX in the venture’s sale of the Embassy Suites in Schaumburg. For more details on the sale, please see CoStar Compensation # 4210047

. Peter Greene of CBRE represented Marriott in its sale of the Tremont Chicago hotel. To learn more on that sale, please see CoStar Compensation # 4301904. To learn more on the sale of the James Hotel, please see CoStar Compensation # 4306222.

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