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Prime, Estein Plan $394M Hotel Renovation

CHICAGO-An affiliate of Prime Group Inc. is joined by an affiliate of Estein & Associates USA Ltd. to create a Marriott in more than half of the 21-story office building.

By Gina Kenny | Updated on March 31, 2008

CHICAGO-A joint venture between Reschke Chicago Partners LLC, an affiliate of Chicago-based Prime Group Inc., and an affiliate of Orlando-based Estein & Associates USA Ltd. is planning a $393.6 million renovation of 208 S. LaSalle, to turn the lower floors into a Marriott Hotel. The lower 12 floors of the 21-story building will be converted to the JW Marriott Hotel-Chicago, with the remaining floors remaining office space, says Larry Vogler, president of Prime. The joint venture, called UST Prime III Joint Venture Ltd., recently closed on a total of $271.6 million in construction financing for the $393.6 million project.

The hotel will have 610 rooms and suites, and 48,000 sf of ballroom and conference meeting space. There will also be a 20,000-sf spa and health club. The hotel is expected to open in early 2010.

The property will be managed and operated by Marriott International. In addition to converting the floors, the venture will also renovate the 335,000 rentable sf of office space on the top nine floors of the building and the 18,000 rentable sf of retail space on the ground floor, Vogler says. The renovation of the office space is expected to be completed in early 2009. Once tenants are moved from the lower floors to the upper nine floors, the building will be 100% leased with approximately 110 tenants that are mainly “independent, small service firms,” Vogler tells GlobeSt.com.

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