In the Miglin-Dellisart financing deal, the loan amount is for80% of the entire cost of the hotel project, says Chris Kelly,managing director for CapitalSource. A Staybridge Suites hotel willbe constructed at the southeast corner of LaSalle Drive and HuronStreet in the Chicago's River North neighborhood, Kelly says.

The 18-story building will have 206 rooms for an extended-stayhotel and 8,000 sf of retail space. An 82-car parking garage willalso be built on the site. The groundbreaking should be held withina couple of weeks and the project is expected to take about 18months. The developers do not yet know what type of retail will bein the development or what the average lease rate will be, Kellysays.

"We are excited with the prospects of the future demand forhospitality in Chicago and the relatively limited amount of newproduct that has been planned or proposed," he says. In addition,CapitalSource felt the loan was a good investment because there arenot a lot of extended-stay, all-suite hotels in Chicago, andIntercontinental Hotel Group is one of the largest hotelfranchises.