JW Marriott Chicago Lands $270M Natixis Refi

The 610-key luxury hotel, which opened seven years ago, is located in the former Continental & Commercial National Bank Building in the city's downtown Loop.

JW Marriott Chicago Loop
JW Marriott Chicago

Nearly seven years after opening in the former Continental & Commercial National Bank Building in Chicago’s downtown Loop, the JW Marriott Chicago Hotel has been refinanced with a $270 million loan provided by Natixis, a French corporate and investment bank.

The owners opened the premier luxury hotel at 151 W. Adams St. in the heart of the financial district in November 2010 following a $396 million restoration. Designed by noted architect Daniel Burnham in the early 1900s, the first 12 floors of the former bank building were transformed into a 610-key luxury hotel. The JW Marriott Chicago features 45,000 square feet of meeting space, including 36 meeting rooms and an 8,500-square-foot grand ballroom. Other amenities include The Florentine Italian restaurant and a 20,000 square-foot spa, wellness and fitness center.

More than 3,000 new hotel rooms are expected to come online in Chicago this year, including the Marriott Marquis, which is slated for a September opening at McCormick Place and will have over 1,200 rooms. Marcus & Millichap’s 2017 U.S. Hospitality Investment Forecast noted there will be pressure on RevPAR for Chicago metro area hotels this year because of the additional rooms. However, a projected increase in convention attendance, crucial to the city’s hotel scene, “will help absorb the new supply,” according to the report.

Danny Kaufman and Jeff Bucaro of HFF arranged the five-year, fixed-rate loan for a subsidiary of UST XIX 208 S LaSalle, a German real estate fund managed by affiliates of Estein USA based in Orlando, Fla.

Natixis deals

Natixis, the international corporate, asset management, insurance and financial services arm of Groupe BPCE, the second-largest banking group in France, has been active in recent months in the U.S.

In nearby Arlington, Ill., Natixis provided a $35 million loan to an institutional investor in June for the acquisition of NorthPoint Center, a 276,333-square-foot retail center. Major tenants in the 38-unit retail center include Jewel Osco, Ross Dress for Less and Marshalls.

In New York City, Natixis collaborated with Ivanhoé Cambridge and Callahan Capital Properties to issue a $72 million green tranche in a CMBS to refinance part of the acquisition loan for 85 Broad St. in Downtown Manhattan. The green-specific tranche was part of a $358.6 million fixed-rate, first mortgage loan provided by Natixis in the spring to purchase the 1.1 million square-foot office tower in the Financial District.