Two years ago, the developer acquired land at the corner of Walton and Rush streets, according to Mary Beth Malone, a partner along with David Pisor, CEO of Elysian Worldwide. "We originally designed a 39-story building," she tells GlobeSt.com, "but later acquired a contiguous parcel." This called for a redesign, which allows for a courtyard and four-story spa, dining and service-retail addition to the tower, "which we needed to expand in order to afford development of the full complex," she says. The full parcel previously contained surface parking, some small buildings and a 7-Eleven convenience store.
The all-in cost is approximately $275 million, including the cost of the land, she says. Atlanta-based Arcapita is the project's majority equity partner. Locally based Golub & Co. is the project manager, and its principals are also investors. The architect is Lucien Lagrange, also based here.
"Both the hotel and residential components are now 68% pre-sold," Malone says. The hotel is expected to open in October 2008 and the first residences will be delivered in late 2008.
The hotel portion occupies floors seven through 26. Units are fully furnished and average 800 sf. Selling prices for a studio begin at $480,000 sf and range between $640,000 and $950,000 for one-bedroom suites. Hotel condos are sold fee simple and deeded with no monthly assessment.
"Owners can join a rental program under which they can opt to ensure use of their unit for 14 nights, 30 nights or 90 nights a year and obtain a respective 42%, 36% or 18% of the revenue their unit produces through rentals. Elysian manages the property and residents and hotel guests share all amenities.
The residential condos, either whole-floor or two to a floor, occupy the top 34 stories and range from 3,400 sf to 12,000 sf. Prices begin at $2.5 million and reach to $6.8 million for the penthouses. "Just one of the seven penthouses is unsold," Malone says.
The construction loan from Hypo is at an undisclosed floating rate for three years with a one-year extension. The New York City-based lender is a subsidiary of Hypo Real Estate Bank International, which has headquarters in New York and Munich. "Given that [Elysian] is already 67% sold, it clearly will be a very successful project," says Evan P. Denner, Hypo's deputy CEO, in a statement.
The developer has formed an operating subsidiary, Elysian Hotels and Resorts. It sees the Chicago property as the first of an Elysian brand of hotel/residential projects. "We're looking at gateway US cities, such as San Francisco, Los Angeles and Washington DC, and some resort locations," Malone says. She expects to announce another location within six to nine months.
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