Phoenix Development buys 300-key Hyatt Regency Deerfield for $32M

Phoenix Development Partners paid $31.5 million for the Hyatt Regency Deerfield hotel and plans to spend another $14 million renovating the complex.

Chicago-based Phoenix bought the 301-key hotel at 1750 Lake Cook Road from Los Angeles-based Ares Management, according to Crain’s.

Ares had acquired the property as part of a portfolio deal in 2010 that valued the Deerfield hotel at $26.5 million, according to Real Capital Analytics.

Phoenix CEO John Mangel told Crain’s the hotel near Interstates 94 and 294 was not performing as well as it should.

“The reason why it’s been held back is the lack of reinvestment,” he said. “Think about the breadth of corporations — Abbott, Baxter, AbbVie, Walgreens, Discover, Caterpillar . . . it’s crazy how many (business) drivers there are.”

Plans call for renovating the hotel’s rooms along with work on its lobby, restaurant and bar, Mangel said.

Phoenix and limited partners Aimbridge Hospitality, Green Door Capital and Polaris Management borrowed $32.9 million for the acquisition and renovation of the hotel, records show.

CBRE brokers Bill Howe and Jonathan Rice represented the venture in securing the loan. [Crain’s]  — John O’Brien