(Read more on the debt and equity markets.)

WHEELING, IL-A partnership between the Harp Group, based in Oakbrook Terrace, IL, and Oak Brook, IL-based Mid-America Development Partners has refinanced the Westin Chicago North Shore Hotel and is adding New York City-based Marathon Opportunity Fund as an equity partner. The amount of the refinancing is $101 million and has a term of three years with two options for one-year extensions, says David Bossy, chairman of Mid-America. The loan to value is approximately 75%, he says. The loan is with JPMorgan Chase, which also was the lender for the project’s $86-million construction financing.

The $100-million hotel opened last November at 601 N. Milwaukee Ave. The 16-story, 390,000-sf building has 412 rooms, 40,000 sf of meeting space, 16,000 sf of ballroom space and three restaurants–Osteria di Tramonto, Tramonto’s Stead & Seafood and RT Lounge created by chefs Rick Tramonto and Gale Gand. The hotel is operated by Starwood Hotels and Resorts International, based in White Plains. The partnership of the Harp Group and Mid-America Development Partners decided to develop a hotel at the location because there were very few four-star, full-service hotels constructed in the Chicagoland area in the past 20 years, Bossy says. The site, at the intersection of Lake-Cook Road and Milwaukee Avenue, also “has great geographical coordinates,” he says.

Bossy says they sold a 50% interest in the hotel to Marathon Asset Management. “We wanted to retain a long-term ownership,” he says. “We had offers to sell it but we wanted to stabilize it.” Partnering with Marathon Asset Management was a “compromise between selling and retaining 100% ownership,” he says.

The hotel is part of a $115-million, mixed-use project on 21 acres. There is also a 50,000-sf retail center that is currently about 50% leased, Bossy says. Tenants include Claim Jumper’s restaurant, Devon Bank, Massage Envy and Experience Salon and Spa. The asking lease rate is “in the range” of $30 per sf net, Bossy says. Additional restaurants are expected on pad sites, Bossy 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?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

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 © 2024 ALM Global, LLC. All Rights Reserved.