CHICAGO-The partnership that owns the Drake Hotel here has paid $30 million for a 20% stake in the land on Michigan Avenue where the hotel is located.
A joint venture that includes Lodging Capital Partners LLC of Chicago and Mount Kellett Capital Management L.P. of New York City that own the building at 140 E. Walton Place acquired a stake in the parcel, according to Cook County records. The property underneath the hotel is owned by local investor Stanley Brashears, according to Crain's Chicago Business.
According to people familiar with the deal, John Buck, a Chicago developer, had submitted an offer to Brashears for a 20% stake in the land. As per the terms of the ground lease with the hotel ownership that called for a right of first refusal, the partnership matched the offer by Buck and purchased the stake in the property. See story in Crain's Chicago Business.
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