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A joint venture between Gencom, GD Holdings and Magellan has sealed $76 million of acquisition financing to purchase a St. Regis hotel property in Downtown Chicago, brokerage firm JLL (JLL) announced Wednesday.
Värde Partners supplied the loan on the 192-key hotel, which is managed by Marriott International.
“We are excited to partner with Gencom, GD Holdings, and Magellan on the financing of the St. Regis, a world class asset we believe is well positioned to capture rebounding business and leisure travel demand in Chicago,” Jon Miller, managing director at Värde, said in a statement.
Magellan Development Group, which built the hotel in 2016, will retain an ownership interest in the project, according to the JV’s announcement about the sale. The purchase price was not revealed.
JLL arranged the loan with a capital markets debt advisory team led by Eric Tupler, Jeff Bucaro, Mark DesLauriers and Jake Martin.
“The St. Regis is the first 5-star hotel property built in Chicago in over a decade,” Bucaro said in a statement. “Given the strong recovery of the Chicago luxury hotel market combined with the exceptional room quality, sizes and amenities, we had several lenders vying for the financing.”
Located beside the Chicago River at 401 East Wacker Drive, the St. Regis is housed on the first 11 floors of the 101-story mixed-use building that also houses condominiums. The property, which is the third-tallest building in Chicago, was previously called Wanda Vista Tower.
“During the pandemic, Gencom saw a unique opportunity to purchase this asset while it was still under construction and strategically arranged to close on the transaction once the property was delivered,” Alessandro Colantonio, chief investment officer at Gencom, said in a statement. “From the onset, we recognized the long-term value of this investment given the strength of the Chicago market and the significance of opening the first luxury hotel downtown in over a decade.”
Officials at Värde Partners did not immediately return a request for comment.
Andrew Coen can be reached at acoen@comercialobserver.com
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