The Real Deal Chicago

Venture led by DDG, Marc Realty plans 250-room hotel in Fulton Market

The firms are looking to get in on the lodging game in the booming neighborhood
March 11, 2019 10:01AM

Marc Realty’s David Ruttenberg and DDG CEO Joe McMillan

DDG, Marc Realty Capital and Ruttenberg Gordon Investments are teaming up on a plan to bring another hotel to Fulton Market’s burgeoning lodging scene.

New York-based DDG and Chicago-based Marc Realty and Ruttenberg Gordon are trying to raise money for the $105 million project, which would develop a 13-story project on the current site of a dairy supply facility at 1234 West Randolph Street, according to Crain’s. The hotel would have at least 250 rooms and be operated by New York-based Standard Hotels.

The developers are looking to raise $55 million for the project through Prodigy Network, a New York-based real estate crowdfunding platform, and hope to have the hotel open in two years, according to Crain’s.

The property is owned by New Dairy, which put the site up for sale in 2016 as a redevelopment opportunity. The firm would be the latest older Fulton Market business looking to cash in on the neighborhood’s transformation from meatpacking and food-supply hub to trendy office and hospitality district.

Fulton Market pioneer Shapack Partners brought the first hotel to the neighborhood when it opened Soho House at 113 North Green Street in 2014. Another hotel will open in a Shapack property next month when the 182-key Hoxton Hotel debuts at 200 North Green Street.

Sterling Bay is looking to cash out of the Ace Hotel property in Fulton Market, seeking $100 million for the two-year-old building. [Crain’s] — John O’Brien