The U.S. hotel industry has been battered by the intensifying restrictions cities and the federal government have imposed to contain the coronavirus.
But that hasn’t stopped some developers from looking ahead. A former Related Midwest executive is planning a boutique hotel on a property in the Motor Row district near the sprawling McCormick Place.
Nick Anderson, who founded real estate investment firm Fern Hill, wants to build Motor Row Hotel on a 30,000-square-foot lot he acquired last month, Crain’s reported. Anderson’s investment firm picked up the property at 2328 South Michigan Avenue for almost $6.3 million from Chicago-based real estate firm JRG Capital Partners, the outlet reported.
Fern Hill’s website says the Motor Row Hotel development would “engage the community and encourage visitors to interact with other local businesses and entertainment venues.”
Anderson founded Fern Hill in 2018, after a decade at Related, and had served as vice president of acquisition and development.
Motor Row’s revival has captured the attention of a number of investors hoping to capitalize on new developments, including the Wintrust Arena, aiming to create an entertainment and hospitality district next to the convention center.
Fern Hill’s other notable acquisitions include the former Treasure Island store in Old Town and an office portion of the property at 360 North State Street, which previously housed the Museum of Broadcast Communications.
Early this month, Richard Branson’s Virgin Hotel Group landed a $37 million refinance on its 250-key Virgin Hotel Chicago in the Loop. [Crain’s] — Brianna Kelly