CHICAGO—In another sign that the Chicago market remains a top priority for investors from overseas, Hamburg-based Union Investment Real Estate has bought the new 452-room LondonHouse Chicago hotel at N. Michigan Ave. and the river for $315 million from a Chicago-based venture led by Oxford Capital Group, LLC. As part of the blockbuster deal, Oxford has agreed to lease and manage the luxury hotel for 25 years. Oxford plans to open later this spring.

The Oxford venture retains ownership of the 28,000 square foot retail parcel on the first and second floors of the 1920s-era structure at 360 N. Michigan Ave., formerly known as the London Guarantee & Accident Building. The sold property includes the new 22-story Modernist glass tower designed by Chicago's Goettsch Partners.

One of the most significant aspects of the sale is Union's willingness “to put a lot of money into a project that does not have a proven history,” Bryan Younge, the new national hospitality and leisure group practice leader for Colliers International Group Inc., tells GlobeSt.com. Still, considering the hotel's location and strong brand, he believes that Union has made a solid decision. “I think that Oxford's concept is spot on, and it has a dynamic market behind it.”