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ROSEMONT, IL-The Harp Group, based in Oakbrook Terrace, has secured mezzanine financing needed for the development of the InterContinental Chicago O'Hare Hotel. The hotel will be located at the northwest corner of River Road and Foster Avenue. Equibase Capital Group LLC, based in Chicago, provided a $12.5-million mezzanine loan for the development.
John Didrickson, principal with Equibase, would not disclose the term or rate for the loan. The project is estimated at $180 million, Didrickson says. Amalgamated Bank's Ultra Fund and San Diego National Bank provided senior financing of $136 million, with a rate below 9% and a term of 36 months with the option of the borrower of extending the loan for another 24 months.
The 350,000-sf hotel will be 12 stories with 570 rooms and 33,000 sf of meeting and banquet space. McCormick & Schmick's and Capital Grille will be freestanding restaurants on the property, he says. The hotel will also have a 10,000-sf Cenitare Restaurant. Construction on the project has already begun and the hotel and freestanding restaurants are expected to be completed by the third quarter of 2008. Chicago-based Portfolio Hotels and Resorts, a subsidiary of the Harp Group, will manage and operate the hotel.
Equibase has provided financing to the Harp Group for other projects, Didrickson says. "We have had great experiences with the Harp Group, teaming up with them on the Westin North Shore Hotel development," he says. The 412-room Westin North Shore Hotel is located at 601 N. Milwaukee Ave. in Wheeling. The InterContinental Chicago O'Hare Hotel "is needed in the O'Hare-Rosemont area at this time," Didrickson says. There are other hotels in the area but "We just think that it is more of an upscale property in a very desirable area in Rosemont near the Chicago O'Hare airport," he says.
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