While the Trump International Hotel and Tower and The Elysian were first and second, respectively, with plans to include hotel units in their condominium projects, The Falor Companies boasts two advantages. The company hopes to start closing on units later this year, and at $225,000, the prices are about half that of the two northern competitors.

"This is an opportunity to get in on the ground floor of a type of real estate investment that is new to Chicago but already very successful in other parts of the country," says president Robert Falor, whose portfolio includes South Florida hotel condo properties with additional projects around the US in the works. "We expect these 161 units to sell very quickly."

If so, Falor Companies might quickly double its investment. A partnership controlled by principals of Chicago-based Marc Realty reportedly got $18 million for the property, but sales of the units could total $36 million.

Under the hotel condominium concept, owners place their unit in the hotel-rental program and receive a percentage of the revenue their unit generates. San Francisco-based Kimpton Hotels & Restaurants has signed on to manage the property, its fourth in the market with The Hotel Monaco at 225 N. Wabash St., The Hotel Allegro at 171 W. Randolph St. and The Hotel Burnham in the Reliance Building at 1 W. Washington St.

Sudler Real Estate is exclusive sales agent for the condominiums. Cooper-Conlin Partners advised the seller, MHJV LLC, on the sale of the seven-story, 91,000-sf building.

The Hyatt's restaurant in the building also is being replaced, Falor says. "We have already spoken with a number of notable Chicago eateries about the space," he adds.

Instant Insights /

Printers Row Hyatt to Become Hotel Condo

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