$59M Foreclosure Suit Filed Against Inn Of Chicago
Not all is wine and roses in the booming downtown hotel market. A foreclosure lawsuit claims the owners of a Streeterville hotel failed to pay the mortgage.
Stabilis Capital Management filed the $58.5M suit against Chartres Lodging Group, owners of the Inn of Chicago hotel at 162 E Ohio. Chartres bought the 359-key hotel in 2006 and refinanced the property a year later with a $57M loan, Crain's reports. The loan was modified after the market crash, which pushed its maturity date to January 2014.
Chartres and loan holder Guggenheim signed a forebearance agreement that expired last July. Guggenheim then sold the loan to Stabilis in December. Stabilis says it has the resources to improve the hotel and that business will continue. But this is a sign that hotels with pre-2008 loans may run into some trouble paying the debt when those loans mature. [Crain's]
