CapitalSource Loans $49M for Local Projects

CHICAGO-CapitalSource is loaning more than $49.4 million and has committed $37.5 million for two projects in the Chicagoland area. The company is providing a loan for $43.1 million to Miglin Properties and Dellisart Lodging for the construction of a 206-room hotel and 82-car parking garage in Chicago, and a loan of $6.3 million to Monroe Investment Partners for the acquisition of 30 acres of land for a retail development in Cicero, IL.

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.