"We sought out Hotel 71 because it has all of the right components for a smart condominium hotel," says president and chief executive officer Robert Falor. "At this point in the game we know exactly what to look for in a hotel that will make it a successful conversion project for us, as well as be an asset to buyers. Before we invest in potential projects, we look at the building's location, current condition, desirability and a number of other factors. Hotel 71 passed all of our tests and we're very pleased to make it part of our growing portfolio of successful condo-hotels in Chicago and across the country."

Having paid AEW Capital Management and Boykin Lodging Co. $95 million for the 454-unit hotel at 71 E. Wacker Dr., Falor Cos. plans another $38 million in renovations to begin during the next three months. That is on top of $20 million invested by AEW Capital Management and Boykin Lodging during their ownership. However, Falor is anticipating a payoff of at least $395,000 per unit, or $179 million.

Falor Cos.' previous projects include the Printers Row Hyatt, where the value of the 161 units at 500 S. Dearborn St. is expected to hit $36 million; and 202 S. State St., where 98 units are expected to average $275,000.