CHICAGO—Officials representing a partnership of Oxford Capital Group, LLC and Quadrum Global say they have secured a $170-million loan to finance the construction of Essex on the Park, a new 56-story, 479-unit luxury apartment building at 808 S. Michigan Ave. As part of the project, the partners will also by 2019 expand and upgrade the adjacent Essex Inn at 800 S. Michigan Ave., a historic, 254-room independent hotel, to a 271-room luxury hotel called Hotel Essex.
In a mark of confidence, the developers secured non-recourse financing, meaning the lender can only get repayments from the proceeds of this particular project, not other assets. Mission Capital Advisors advised ownership and ran point in sourcing the financing from a global investment bank.
“Many lenders, banks in particular, typically require recovery on construction loans due to their riskier nature,” Ari Hirt, of the New York-based firm tells GlobeSt.com. That is especially true for mixed-use projects such as the Essex. Many lenders “only want to do apartments and others just want to do hotels.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
