$76M of acquisition financing arranged for St. Regis Chicago

CHICAGO, May 16, 2023 – JLL Capital Markets announced today that it arranged $76 million in acquisition financing for the St. Regis, a five-star, 192-key, luxury hotel in Chicago.

JLL represented the borrowers, Gencom, GD Holdings and Magellan, to arrange the loan through the lender, Värde Partners.

Located in the heart of downtown Chicago at 401 E Wacker Drive, the 101-story mixed-use skyscraper is Chicago’s third tallest building and the tenth tallest building in the country. Lauded as the most significant addition to the Chicago skyline in a generation, the project redefines luxury hospitality offerings in Chicago, coupling an extremely high standard of product and finishes with exquisite design and a unique location.

The St. Regis consists of 192 oversized guest rooms, including 33 suites on six floors and 80 floors of residential condominium space, all with views of the Chicago River, Lake Michigan, Navy Pier and Millennium Park. Building amenities include five food and beverage outlets, meeting and ballroom spaces and a spa with an indoor pool, outdoor sundeck and fitness center.

Positioned at the doorstep of the city’s top leisure and corporate demand generators, The St. Regis is just a short walk away from some of Chicago’s most revered landmarks including Millennium Park, Navy Pier, the Magnificent Mile, Maggie Daley Park and more. Transportation access via Lake Shore Drive, Chicago Transit Authority bus and train routes offers guests unmatched connectivity around the city. The hotel has excellent proximity to two international gateway airports, O’Hare International and Midway Airport, both being less than 20 miles away.

Chicago’s Central Business District continues to illustrate positives signs of recovery after quarterly new absorption levels reaches its highest level since the first quarter of 2020. Chicago boasts a thriving tourism industry, being one of the most visited cities in the U.S. with 60.8 million visitors in 2019. The city continues to have an impressible rebound in leisure demand and progresses towards full recovery.

The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Eric Tupler, Executive Vice President Jeff Bucaro and Analysts Mark DesLauriers and Jake Martin.

“The St. Regis is the first 5-star hotel property built in Chicago in over a decade. Given the strong recovery of the Chicago luxury hotel market combined with the exceptional room quality, sizes, and amenities, we had several lenders vying for the financing” said Bucaro.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Gencom is a U.S.-based investment firm that owns, operates and develops prized real estate around the world, with an emphasis on luxury hotels, resorts and branded residential properties; and which is also an active owner and investor in hospitality operating platforms. Gencom’s current real estate portfolio is comprised of some of the world’s most iconic hotels, resorts, and destinations which are amongst the leading properties in the industry with key operating partners such as Four Seasons, Ritz-Carlton, Rosewood, Auberge, Fairmont, Hyatt, Marriott and St. Regis. www.gencomgrp.com

Founded more than 40 years ago, Gencom has grown to become one of the nation’s leading firms specializing in the development and management of luxury resort and residential properties, alongside full-service hospitality operating platforms. Today, the Gencom portfolio is comprised of nearly $8 billion in assets under management and includes 23 owned assets in operation or under development with over 7,000 hotel rooms around the world. Gencom’s portfolio also includes a distinct affiliated operating platform: Pyramid Global Hospitality, which oversees hotel property management and operations throughout the U.S. and Europe.

GD Holdings, LLC is a privately held real estate investment company headquartered in Denver, Colorado. The company was founded on a highly disciplined investment approach towards hard assets, specifically real estate, with a focus towards value creation, capital preservation, and enduring quality. The company encompasses a multi-faceted real estate business – fully engaged in the acquisition, development, ownership and management of hotels and commercial real estate assets. The depth of its in-house resources allows the company to address every element of the business including acquisition, planning approvals, financing, construction oversight, design, market research, asset management, financial accounting, reporting and legal. GD Holdings has significant direct investments in distinct real estate, including luxury hotels such as Four Seasons Hotels & Resorts, The Ritz-Carlton and St. Regis, alongside other distinguished brands by Marriott and Hilton. GD Holdings continues to actively pursue its growth of hospitality and commercial properties throughout the United States. The company is well-capitalized and building a portfolio of first-class, long-term assets in strong, diverse markets poised to thrive well into the future.

Magellan Development Group is a family-owned company that was founded in 1996. To date, Magellan is the premier developer of mixed-use properties in Chicago and has extended its footprint to other major U.S. cities, including Minneapolis, Miami, Nashville, Austin, and Somerville, MA. From conception to completion, Magellan looks after all aspects of the development process and has unique experience in interrelated fields of real estate design, construction management, development, development consultation, architecture, leasing, sales and marketing. For more information on Magellan Development Group, please visit: www.magellandevelopment.com.

Värde Partners is a leading global alternative investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested through multiple credit cycles, building on its roots in special situations and distressed to invest more than $95 billion across the credit quality and liquidity spectrum in both public and private markets. Värde currently manages over $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services. For more information, please visit www.varde.com.