X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the debt and equity markets.)

ROSEMONT, IL-The Harp Group, based in Oakbrook Terrace, has secured mezzanine financing needed for the development of the InterContinental Chicago O’Hare Hotel. The hotel will be located at the northwest corner of River Road and Foster Avenue. Equibase Capital Group LLC, based in Chicago, provided a $12.5-million mezzanine loan for the development.

John Didrickson, principal with Equibase, would not disclose the term or rate for the loan. The project is estimated at $180 million, Didrickson says. Amalgamated Bank’s Ultra Fund and San Diego National Bank provided senior financing of $136 million, with a rate below 9% and a term of 36 months with the option of the borrower of extending the loan for another 24 months.

The 350,000-sf hotel will be 12 stories with 570 rooms and 33,000 sf of meeting and banquet space. McCormick & Schmick’s and Capital Grille will be freestanding restaurants on the property, he says. The hotel will also have a 10,000-sf Cenitare Restaurant. Construction on the project has already begun and the hotel and freestanding restaurants are expected to be completed by the third quarter of 2008. Chicago-based Portfolio Hotels and Resorts, a subsidiary of the Harp Group, will manage and operate the hotel.

Equibase has provided financing to the Harp Group for other projects, Didrickson says. “We have had great experiences with the Harp Group, teaming up with them on the Westin North Shore Hotel development,” he says. The 412-room Westin North Shore Hotel is located at 601 N. Milwaukee Ave. in Wheeling. The InterContinental Chicago O’Hare Hotel “is needed in the O’Hare-Rosemont area at this time,” Didrickson says. There are other hotels in the area but “We just think that it is more of an upscale property in a very desirable area in Rosemont near the Chicago O’Hare airport,” he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.