The Inn of Chicago and Stabilis Capital managing principal Salman Khan
After putting the Inn of Chicago on the market last year, New York-based Stabilis Capital Management has opted to fix it up instead.
Cook County records indicate Stabilis obtained a $97 million loan from Goldman Sachs for the property, at 162 East Ohio Street, just off the Magnificent Mile.
Several permits have been filed with Department of Buildings for a renovation, including permits to demolish and build out the building’s mezzanine level; renovate the basement, laundry room and staff facilities; and create a new business center on the second floor.
A distressed debt fund managed by Stabilis bought the property’s mortgage in 2015 and then filed for foreclosure in January 2016, Crain’s reported.
Stabilis took possession of the hotel from its previous owner, Chartres Lodging Group, a year later after an attempt by Chartres to block a foreclosure by declaring Chapter 11 bankruptcy.
In spring 2017, Stabilis hired Paramount Lodging Advisors to sell the property.
A Stabilis spokesperson told Crain’s in April 2017 that multiple offers to buy the hotel had come in, all in the $60-$70 million range. He noted at the time that Stabilis was “pretty far along” in moving toward a sale.
The 21-story, 359-key hotel was built in 1927.
“The hotel is in a marquee location but the building itself presents some challenges,” First Hospitality Group’s Robert Habeeb, who has no involvement with the property, told Cain’s. “A developer will need a little imagination to maximize the potential.”
Calls to Stabilis, Goldman Sachs and Paramount were not returned.