Queensgate lands $44M acquisition loan on hip Freehand Chicago hotel

The London-based private equity firm acquired the 215-key hotel last month as part of portfolio deal

Nov.November 21, 2019 02:00 PM
Freehand Hotel and Queensgate Investment Company CEO Jason Kow

Freehand Hotel and Queensgate Investment Company CEO Jason Kow

Queensgate Investments landed an acquisition loan on the stylish Freehand Chicago in River North, a purchase that was part of a larger hotel portfolio deal.

An entity of the London-based private equity firm secured a $44 million loan on the 215-key hotel, property records show. Column Financial provided the debt on the 16-story hotel, which is located at 19 East Ohio St.

Last month, Queensgate paid $400 million for the portfolio of Freehand Chicago and three other Freehand properties. The seller was New York-based developer Sydell Group and billionaire investor Ron Burkle’s firm Yucaipa.

Sydell and Yucaipa paid $13 million for the property six years ago, and secured a $32 million loan. It gutted the building and undertook major renovations, rebranding it as an affordable hip-hotel. Last year, it had revenue of nearly $11 million, with an operating income of $2.2 million, Crain’s previously reported. It was appraised at $53 million in 2016, according to Bloomberg.

Queensgate did not respond for comment.

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