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.
In the other financing deal, Chicago-based Monroe Investment Partners is receiving a senior acquisition and pre-construction loan for more than $6.3 million and a senior construction loan commitment for $37.5 million. Monroe Investment Partners is buying 30 acres of unimproved land at 31st Street and Cicero Avenue in Cicero. CapitalSource is investing in the project because of the location of the proposed development and the sponsor for the project. "They are particularly skilled and experienced in retail and industrial property development," Kelly says.
Monroe Investment Partners are currently in "advanced negotiations" with two "big box retailers" that would each have between 100,000 sf to 200,000 sf, Kelly tells GlboeSt.com. It is likely to be about nine months before construction would start on the buildings and construction would likely take six to nine months, he says.
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