Jones Lang LaSalle Secures $158.5 Million Senior Debt Financing for Sheraton Chicago Hotel & Towers
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Jones Lang LaSalle Secures $158.5 Million Senior Debt Financing for Sheraton Chicago Hotel & Towers
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-07-30
Financing will recapitalize property owned by Tishman Hotel & Realty
Working with Tishman Hotel & Realty, Jones Lang LaSalle has secured $158.5 million in senior debt financing from Goldman Sachs Real Estate Mezzanine Partners for the refinancing of the Sheraton Chicago Hotel & Towers, a 1,209-room, full-service, convention hotel located in the heart of downtown Chicago. The floating rate loan provides Tishman with excellent flexibility and attractive pricing.
Leading the Jones Lang LaSalle team on this transaction was Real Estate Investment Banking Senior Vice President Mathew Comfort and Jones Lang LaSalle Hotels Executive Vice President Jeffrey Davis.
“With the capital markets becoming increasingly more liquid, debt financing for a trophy asset such as this has become appealing to lenders seeking safe financing opportunities,” said Comfort. “This is one of the largest single-asset hotel loans in the United States in the past two years—the entirety of which was funded by a single financial institution. It’s an indication that we are seeing positive momentum in the debt capital markets with respect to hotels. The Goldman Sachs team was able to work collaboratively with THR and other parties involved in the deal to close the loan on the target date.”
Added Davis, “This was truly a joint effort with Tishman Hotel & Realty to secure financing for this asset. As one of the nation’s leading hotel real estate companies, they made a coordinated effort to implement cost containment measures at this hotel that augmented net operating income. That, combined with a history of strong cash flow, allowed THR to obtain attractive loan terms on a large asset with a ground lease in place.”
The Sheraton Chicago Hotel & Towers stands 34 stories above the Chicago River, overlooking the city skyline and Lake Michigan. It is located approximately four miles from McCormick Place Convention Center, two blocks from the “Magnificent Mile,” and five blocks from Navy Pier. The property features 20,000 square feet of flexible meeting space including the largest ballroom in the Midwest, an executive conference center, six distinct food and beverage outlets, an indoor swimming pool and health club, a club-level lounge and business center, a gift shop, and a 420-space, on-site, underground parking garage. Tishman Hotel & Realty built and developed the hotel in 1992 and has owned it since that time.
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