$394M Financing in Place for Redevelopment of Landmark Chicago Office Tower
- Mar 25, 2008
The historic office structure at 208 South LaSalle Street in Downtown Chicago is about to get more than a facelift, now that owner The Prime Group Inc. has secured an aggregate $393.6 million financing package for the building’s reincarnation as a hotel and office property. Approximately $271.6 million of the funding–orchestrated by real estate services firm Holiday Fenoglio Fowler L.P.– will be used for construction activities, and the remaining $123 million served as equity for the capitalization of the joint venture vehicle that is redeveloping 208 LaSalle. The partnership, UST Prime III Joint Venture Ltd., consists of Prime affiliate Reschke Chicago Partners L.L.C. and an affiliate of Estein & Associates USA Ltd. Located in the city’s Central Business District, 208 LaSalle (pictured) was originally developed in 1912 and carries the distinction of being celebrated Chicago architect and urban planner Daniel Hudson Burnham’s final and most noteworthy project. Prime purchased the 21-story tower, which is listed on the National Register of Historic Places, in 2005. The joint venture will convert the property into a mixed-use facility that will include the upscale 610-room JW Marriott Hotel-Chicago on the first 12 floors with 48,000 square feet of event and meeting space as well as a 20,000 square-foot spa and health club. Approximately 335,000 square feet of existing office space on the top nine floors will be renovated, as well as 18,000 square feet of street-level retail space.