Mission’s Debt & Equity Finance Group secures strong terms for refinancing of century-old landmark
Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged an $80-million, non-recourse, structured loan for the Chicago Athletic Association (“CAA”) hotel, a historic 241-key lifestyle hotel located at 12 South Michigan Avenue in Downtown Chicago.
Mission Capital’s team of Jordan Ray, Ari Hirt, Steven Buchwald and David Behmoaras represented a joint venture of AJ Capital Partners, Geolo Capital and Agman in securing the loan from Deutsche Bank. The partnership will use the loan proceeds to retire the construction loan on the property – a landmarked building that served as an elite private men’s athletic club from the time it opened in 1893 until 2007. After purchasing the historic building in 2013, ownership meticulously restored the property before launching the award-winning boutique hotel.
“The market for this transaction was fairly deep – with varying levels of structure and nuance,” Ray said. “Pricing was competitive, and ultimately our client awarded the deal to Deutsche Bank.
Located on a prime portion of South Michigan Avenue, the property is directly across the street from Millennium Park, providing guests with sweeping views of both the park and Lake Michigan. Situated within Chicago’s Central Business District, the hotel is proximate to an abundance of leisure destinations, including museums and academic and cultural institutions.
The hotel’s seven innovative food and beverage outlets include Cindy’s Rooftop, a critically-acclaimed indoor/outdoor rooftop restaurant and bar offering unencumbered views of Millennium Park and Lake Michigan; the Game Room, a nostalgic playful space featuring a bocce court, billiards and shuffleboard; the Cherry Circle Room, Land & Sea Department’s James Beard Award-winning restaurant; the Milk Room, an intimate eight-seat speakeasy serving rare spirts; the Drawing Room; a ground-floor Shake Shack, the only one in the world to provide in-room dining service; and Fair Grounds, which provides an unmatched offering of fair-trade coffee and beverages.
“This is an attractive asset,” Hirt noted. “The market we created understood that the property has significant upside potential. We received some very strong bids, including several with higher leverage, but we ultimately locked in an $80-million structured loan, which proved the best fit for ownership.”
Mission Capital Advisors is one of the most active advisory firms in the nation, arranging financing for all real estate asset classes.
Hospitality Deals and Acquisitions from June 2017
June 14, 2017
Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged an $80-million, non-recourse, structured loan for the Chicago Athletic Association hotel, a historic 241-key lifestyle hotel located at 12 South Michigan Avenue in Downtown Chicago. Mission Capital’s team—Jordan Ray, Ari Hirt, Steven Buchwald, and David Behmoaras—represented a joint venture of AJ Capital Partners, Geolo Capital, and Agman in securing the loan from Deutsche Bank. The partnership will use the loan proceeds to retire the construction loan on the landmarked building that served as an elite private men’s athletic club from the time it opened in 1893 until 2007. After purchasing the historic building in 2013, ownership meticulously restored the property before launching the award-winning boutique hotel.