In the Miglin-Dellisart financing deal, the loan amount is for 80% of the entire cost of the hotel project, says Chris Kelly, managing director for CapitalSource. A Staybridge Suites hotel will be constructed at the southeast corner of LaSalle Drive and Huron Street in the Chicago's River North neighborhood, Kelly says.
The 18-story building will have 206 rooms for an extended-stay hotel and 8,000 sf of retail space. An 82-car parking garage will also be built on the site. The groundbreaking should be held within a couple of weeks and the project is expected to take about 18 months. The developers do not yet know what type of retail will be in the development or what the average lease rate will be, Kelly says.
"We are excited with the prospects of the future demand for hospitality in Chicago and the relatively limited amount of new product that has been planned or proposed," he says. In addition, CapitalSource felt the loan was a good investment because there are not a lot of extended-stay, all-suite hotels in Chicago, and Intercontinental Hotel Group is one of the largest hotel franchises.
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