News
Hotel Refi is Back
August 4, 2010
| Jones Lang LaSalle and Tishman Hotel & Realty secured $158.5M in senior debt for the Sheraton Chicago Hotel & Tower last week.Goldman Sachs Real Estate Mezzanine Partners financed the building, proving that there are large lenders looking for assets in the hotel market. | |
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| Jones Lang LaSalle's Mathew Comfort said multiple lenders bid on the financing, including several single lenders willing to take down the full loan amount. The 1,209-room hotel has a history of substantial cash flow, making it an attractive asset for Goldman Sachs and other lenders. In 2009, almost no lenders would have even looked at a deal of over $50M, Mathew says. | |
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| In case Coach Smith reads Bisnow, we added our two sense to the whiteboard. Mathew, who arranged the financing with colleague Jeffrey Davis, said that the refi is a sign that lenders think the hotel markets have hit rock bottom and will be staying the same or improving in the foreseeable future. The loan is also one of the largest for a single asset hotel in the last two years, indicating that there is cash available for bigger loans, especially on trophy assets. The hotel, just north of the Chicago River on Columbus Drive, has 20k SF of meeting space and six ground-floor retail spaces. |
