Developer Secures $136M for InterContinental

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ROSEMONT, IL-Mid-America Development Partners, based in Oak Brook, and the Harp Group, based in Chicago, have secured $136 million in financing for the construction of a 563-key InterContinental Hotel, at the northwest corner of River Road and Foster Avenue. BlueStone Real Estate Capital, based in Philadelphia, secured the financing, which was 90% loan-to-cost, from Amalgamated Bank’s Ultra Fund, says Andrew Benioff, managing partner of BlueStone Real Estate Capital. The estimated cost of the project is $152 million, Benioff tells GlobeSt.com.

Construction is already under way on the 12-story, 350,000-sf hotel. The hotel will also have approximately 27,000 sf of meeting and banquet space and will have a Cenitare Restaurant of approximately 10,000 sf, Benioff tells GlobeSt.com. Additionally, there will be the Capital Grille restaurant and McCormick & Schmick’s restaurant on freestanding outlots. The ground leases for the freestanding restaurants have terms “ranging from 10 to 15 years with extension opens that could make them as long as 25 to 30 years,” Benioff says. Lease rates were not disclosed.