Hotel real estate private equity firm KHP Capital Partners refinanced its debt on the Kimpton Gray hotel with a $68 million loan.
PNC Bank provided the loan for the 281-key property at 39 South LaSalle Street, according to Cook County property records.
The loan is the bank’s biggest in Cook County this year. PNC also provided a $65 million mortgage earlier this year to CA Ventures and White Oak Realty for the redevelopment of the Father & Son Plaza on the North Side.
In 2014, San Francisco-based KHP said it planned to spend $106 million to acquire the vintage office building from Itasca-based Hamilton Partners and converting it into the boutique hotel. It would use $14.6 million of historic tax credits to cover part of the cost, Crain’s reported at the time.
Chicago-area hotels are staying busy, even with a multiplying field of competitors. The region’s occupancy rate nudged up during the 12-month period ending in June, according to Marcus & Millichap.
A couple of blocks down from the Kimpton Gray hotel, Prime Group is embarking on a $93 million effort to convert the top five floors of the downtown hotel building at 208 South LaSalle, shifting from office space to a separate boutique canopy hotel.Recommend0 recommendationsPublished in