The Real Deal Chicago

Thor Equities signs 3 retailers to leases at Palmer House Hilton

The deals follows the loss of 2 tenants to bankruptcy
July 12, 2018 09:00AM

Jospeph Sitt and Palmer House Hilton at 17 East Monroe Street (Credit: Palmer House Hilton Hotel)

Thor Equities signed three retailers to leases in the Palmer House Hilton after losing two to bankruptcy.

The firm inked women’s apparel dealer New York & Co. to a 18,700-square-foot lease over two floors in the space formerly occupied by women’s clothing retailer A’GACI, according to Crain’s.

Women’s shoe company Naturalizer signed on for 1,900 square feet formerly occupied by Aerosoles, and Luxe Barber & Shave Lounge took over another 560 square feet at the property, at 17 East Monroe Street.

The Palmer House’s retailers accounted for $3.9 million in net operating income for Thor in 2017, down from $4.5 million in 2016, according to a report tied to a $62 million CMBS loan on the property. But Barclay’s projected the annual income at $5.2 million when it was underwriting the loan, according to Crain’s.

George Stanchfield of Thor Equities represented the company in all three new leases.

New York-based Thor just took out a $427 million refinancing on the hotel, joining the trend of investors refinancing instead of selling in order to cash in on properties but still hold on to them amid rising property values.

At the same time, the firm recently hired Cushman & Wakefield to sell a 19,000-square-foot commercial property at 36 South State Street that houses Verizon, T-Mobile and Blick Art Materials. The sale was expected to fetch up to $28 million. Thor sold a four-story building at 133 South State Street for $10 million last year. And in 2016, it sold a retail space near the 36 South State Street location for $44 million.

The retail activity comes as Thor turns its attention to Fulton Market. The firm landed a pair of loans totaling $50 million in March for properties it owns in the hot West Loop neighborhood. [Crain’s] — John O’Brien