The Homestead will open as the Graduate Evanston this fall.

EVANSTON, IL—The iconic The Homestead boutique apartment hotel here has been acquired by Chicago-based AJ Capital Partners, which has plans to convert the property into one of its "Graduate Hotels."

AJ Capital acquired the 91-unit hotel at 1625 Hinman Ave. for $11 million, according to the Essex Realty Group, which brokered the transaction on the property that is located steps from Northeastern University in Downtown Evanston.

Purchased in 1992 by a private investment group, the building is currently listed on the National Register of Historic Places and has operated as a boutique hotel and short-term rental for more than 90 years. The building is comprised of 35 efficiency units, 21 studio units, and 35 one-bedroom units, many of which feature lakefront views. The property also features approximately 4,000 square feet of first floor restaurant and lounge space.

Crain's Chicago Business reports that AJ Capital plans to convert the property into one of its Graduate hotels. The firm, according to its website has a chain of 21 Graduate hotels. AJ Capital Chief Investment Officer Tim Ryan told Crain's that AJ Capital plans to invest approximately $13 million to reconfigure the space into 100 guest rooms. According to the company's website, the Graduate Evanston is slated to open this fall.

"The Homestead is a well-known and highly regarded institution, a favored respite for visitors in lieu of traditional hotels, and home to some of the finest restaurants on the north shore. The selling group owned the property for nearly 30 years and along with their employees, proudly kept it in pristine condition," says Doug Fisher, principal, Essex Realty Group. "They wanted to sell to an organization that would honor its history and heritage, and AJ Capital Partners is an ideal purchaser that will not only honor its tradition, but also incorporate its own brand and modern amenities."

The Homestead garnered national interest from a variety of qualified investor groups seeking to reposition the asset as student housing, senior housing, multi-family or a rebranded boutique hotel. Within two weeks of marketing, Essex Realty Group generated 40 property tours and procured 15 offers. Essex Realty's Doug Imber, Doug Fisher, Kate Varde, and Matt Feo were the brokers on the transaction.

Launched in 2014, Graduate Hotels is a new, boutique hotel collection targeting university towns across America. AJ Capital currently has 21 operating Graduate Hotels and a host in various phases of development.

The firm's operating Graduate Hotels are located in: Ann Arbor, MI; Annapolis, MD; Athens, GA; Berkeley, CA; Bloomington, IN; Charlottesville, VA; Columbia, SC; Columbus, OH; Eugene, OR; Fayetteville, AR; Iowa City, IA; Lincoln, NE; Madison, WI; Minneapolis, MN; New Haven, CT; Oxford, MS; Providence, RI; Richmond, VA; Seattle, WA; State College, PA and Tempe, AZ.

In addition to the Graduate Evanston, the firm, according to its website, has plans to open new Graduate Hotels in: Nashville, Storrs, CT; Knoxville, TN; Roosevelt Island, NY; Dallas; Palo Alto, CA; East Lansing, MI; Cincinnati, Chapel Hill, NC; Cambridge, U; and Tucson, AZ.

Instant Insights /

Iconic Homestead Hotel Acquired by Chicago's AJ Capital Partners

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