GD Holdings Buys Magellan’s Unsold St. Regis Condos for $117M

GD Holdings has doubled down on Chicago’s 101-story St. Regis tower.

The Denver-based firm that partnered with Miami-based Gencom to pay $134 million last year for the 192-room St. Regis hotel in the Jeanne Gang-designed skyscraper at 363 East Wacker Drive has once again made a nine-figure deal to acquire a huge portion of the rest of the building, according to public records.

An affiliate of GD Holdings paid Chicago-based developer Magellan $117 million for dozens of condo units that had yet to be purchased by individual buyers within the property, Cook County records show. GD acquired 84 condos out of the 393 that Magellan built within the property, which has been the site of some of Chicago’s most high-profile home purchases in recent years, including a more than $20 million sale to a Mexican mining billionaire for a 71st-floor unit.

Neither Magellan nor GD immediately returned requests for comment Thursday morning.

The condos deal was financed with a $110 million loan to GD provided by JP Morgan Chase, public records show. Daniel Wolf, who has ties to GD Holdings and was also the signatory on purchase documents for the hotel section of the building last year, signed off on the mortgage for the condos deal, records show.

The downtown Chicago condo market is experiencing a downturn, with significant price reductions and a lack of construction projects, as high interest rates and crime concerns deter potential buyers. Luxury condos, in particular, have seen substantial depreciation, with many properties selling for less than their previous values, highlighting a shift in buyer preferences toward more affordable and lifestyle-oriented options.

Despite these challenges, there are signs of a potential comeback, as some buildings have seen increased interest, suggesting a gradual recovery in demand for downtown living.

Rafael Murillo, a Compass agent who has closed multiple re-sales of condos in the St. Regis for clients who bought from the developer, expects GD to consider renting out some of the units until the for-sale market turns around in downtown Chicago.

“Most tiers [in the St. Regis] have seen appreciation in value, while a few have remained stable or experienced slight decreases,” Murillo said. “Aside from the re-sale of a heavily discounted penthouse, the building continues to be a strong option for affluent buyers seeking to buy downtown.”

For Magellan, the deal with GD helps relieve pressure on the firm after it took out a $149 million mortgage loan last year, provided by an entity managed by Goldman Sachs. The developer put up 147 units that hadn’t yet sold as collateral. It’s unclear from public records when that condo inventory loan was set to mature.

GD has deep experience in luxury hospitality. Wolf and the firm have been central figures in deals for a Four Seasons hotel development in Denver, as well as a $165 million purchase in 2022 for a Four Seasons in Nashville.