Los Angeles-based investor Jerry Wise will unveil an unconventional condo deconversion plan this week — turning the landmarked Streeterville condos into a boutique hotel.
The converted condo at 227 E. Walton Street would offer 25 boutique hotel rooms at a time when experts question whether the hospitality market — another booming play for developers — can support the growing number of hotels in the area.
Despite energetic downtown development, hotel room prices dropped to an average $259 per night in June, down from $278 in June last year. Occupancy rates also declined 2 percentage points since last year, The Real Deal reported last week.
With 13 floors and 25 units, the Harry Weese-designed landmark would be operated by an independent company to offer luxury, corporate suites for extended stays, Crain’s reported.
The plans for the hotel are “very preliminary,” Wise, owner and chairman of BRAD Management, told Crain’s.
Condo deconversion has become a popular investment choice in Chicago, with rentals in high demand. Deconversion adds the logistical burden of securing approval from three fourths of a building’s current condo owners, but apartment buildings have proved lucrative enough to draw investors, TRD previously reported. [Crain’s] — Sarah Paynter