Reschke, Primo Seeking $50 Million Loan to Make old BMO Harris Bank Building Into Hybrid Hotel and Apartments

A Downtown Chicago office building whose developers already received a city subsidy to convert a portion of it into apartments are now asking for another public funding bump: this time to convert the rest of it into a hotel.

Just this week, the Chicago Community Development commission approved a tax-increment financing loan of $50 million to jumpstart the hotel redevelopment of the lower 10 floors at the BMO Harris Bank building at 111 West Monroe Street. Prime Group chairman and CEO Mike Reschke and Capri Investment Group CEO Quentin Primo previously won another $40 million city subsidy to turn the rest of the building’s upper floors into 345 apartments, according to Crain’s.

Reschke told the outlet that the way the TIF request would function for a hotel is different: it would be a repayable loan this time, not a grant.

The TIF loan still needs City Council approval. The combination of the city subsidy and TIF loan would knock off close to two-thirds of the total $166.5 million renovation price tag. Reschke told the CDC panel that they’re in negotiations with Marriott International to carry the luxury W Hotel brand over to the new property after it was removed from its former Chicago spots.

As Chicago looks to retool its downtown glut of empty office space, Reschke and Primo have been key players in the city’s pivot. They’re heading up the renovation of the historic 1.2 million-square-foot Thompson Center at the corner of Randolph and LaSalle for Google, a move that’s helped regalvanize faith in the future of the Loop.

At a time where tenant vacancies continue to increase, Google has already found a high profile tenant: Joe Mansueto and his investment research firm Morningstar signed on for 300,000 square feet on the upper floors last month. Google seemingly will function as a landlord for portions of its building, and is set to occupy the other portions in 2027.

— Hunter Cooke