A luxury hotel in a landmark building on La Salle Street is the first recipient of city-backed financing program for energy conservation.
Developers of the 233-key Reserve Hotel at 208 S. La Salle St. will receive $21.25 million in financing through Chicago PACE (Property Assessed Clean Energy) to reduce energy consumption. The money will be repaid from future property tax bills that apply to the building.
The Prime Group announced last year they were planning the $118 million project to add a small, luxury hotel to the Loop Market.
They’ll pay 5.5 percent interest over the next 27 years on the loan, which is expected to save them an estimated $3 million in operating expenses. The hotel will have improved windows, lighting, elevators, plumbing and heating and cooling systems, according to the Sun-Times
Since Prime’s hotel endeavor began, the hotel market in the downtown Chicago area has boomed, including two South Loop hotels securing a $147 million refinance loan three months ago and a huge investment by Blackstone group in a River North Marriott in July.
With this being PACE’s first project, the program has money to spend especially since it relies on private sector investments. Jana Wesley, managing director of Chicago PACE told the Sun-Times, “Our task has been to do as much marketing as we can so people know this is available.”
The Reserve is still under construction and is planning to open in spring 2021. [Sun-Times] – Jacqueline Flynn