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Phoenix Development lands $91M construction loan for Hilton project
The developer acquired the 14-story building for $38M, and plans a total of 349 rooms
Phoenix Development Partners landed a $90.5 million construction loan for its hotel redevelopment project across from the Willis Tower.
Affiliates of Goldman Sachs provided the financing for what will be a dual-branded 349-key Hilton at 226 West Jackson Boulevard in the Loop, property records show.
Phoenix and Goldman Sachs did not immediately return requests for comment.
The Chicago-based developer acquired the 14-story property, the former headquarters of City Colleges of Chicago, in September for $32.7 million, Crain’s previously reported.
The new hotel will have 135 Hilton Garden Inn rooms on the lower floors. A higher-end Canopy by Hilton, with 214 rooms, will occupy the upper levels.
Phoenix also took a different route to help secure financing for the project: It also raised nearly $10 million through crowdfunding portal CrowdStreet, according to reports.
The building dates to the early 20th century, and before Phoenix stepped in, there had been plans to convert the property into a residential complex.
Developers have been working to reposition older office properties in the Loop area, converting them to hospitality buildings amid a strong hotel market in the city.