CHICAGO- Langham Hotels and Resorts has partnered with Oxford Capital Group LLC to open a luxury hotel in 330 North Wabash, one of the most architecturally significant buildings on the city’s Riverfront.
The new Langham Chicago Hotel, expected to open in 2012, will occupy floors two through 13 of the 52-story building, along with a portion of the first floor and riverfront plaza. Pacific Eagle Holdings, a US-based affiliate of Langham, acquired the real estate from LaSalle Hotel Properties for $58.8 million. Sources close to the deal say the new Langham Chicago Hotel will have a price tag of roughly $100 million.
Prime Group Realty Trust owns roughly 1.1 million square feet of office space in the upper floors of the iconic building, which was designed by renowned architect Mies van der Rohe. It formerly housed the IBM’s Midwest headquarters operations.
“IBM was the anchor tenant until 2006, and when they moved out, they left us with a large block of space in the building,” says Jeff Patterson, president and CEO of Prime Group Realty Trust. “Based on what was happening in the neighborhood with the construction of Trump Tower and other residential project, we thought this building was well suited to be mixed-use and to offer a high-end hotel.”
LaSalle Hotel Properties acquired a portion of the building from Prime Group Realty Trust in 2008, partnering with Oxford Capital Group and planning to develop a luxury hotel in lower portion of the class A building.
However, LaSalle Hotel Properties decided not to move forward with those plans, given the state of the economy and the lack of funds available to finance hotel projects, according to sources close to the deal. It took an $8 million loss on the sale, according to filings with the SEC.
“We were approached by many of the leading luxury hotel brands during the last 30 months, but Langham quickly distinguished itself with its dedication and shared vision for this exciting project,” says John W. Rutledge, president and CEO of Oxford Capital Group LLC and managing member of Oxford OG Hospitality Chicago LLC, the local developer of the project. Oxford OG Hospitality Chicago, LLC also includes senior principals of The Gettys Group Inc.
The Langham Chicago Hotel will occupy about 375,000 square feet of 330 North Wabash. It will offer 330 guestrooms and suites ranging from 525 square feet to well over 2,000 square feet, some of the largest rooms in Chicago.
Guestrooms will have 9.5 foot ceilings with floor-to-ceiling windows providing dramatic views of the Chicago River, Lake Michigan and the Chicago skyline. All will feature large five-fixture bathrooms.
The hotel will offer nearly 20,000 square feet of state-of-the-art facilities for meetings and social affairs, including a 5,000 square foot ballroom with 20 foot ceilings and spectacular urban and river views. A 9,000 square foot distinguished chef-driven restaurant will also be featured, as well as a wine room, fitness center, indoor pool and Langham’s signature Palm Court and Chuan Spa.
“We always though the hotel use was complementary to the office use,” Patterson tells GlobeSt.com. “We spent a lot of time getting to know Langham because we’re going to own different pieces of the same building. We think we’ve got a great neighbor to own the hotel piece.”
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