CHICAGO—Holliday Fenoglio Fowler L.P. (HFF) has arranged $78 million in construction financing for the development of a triple-branded Hilton hotel, which will be constructed across the street from the McCormick Convention Center here in downtown.
HFF worked on behalf of the developer, Michigan Cermak Indiana LLC and First Hospitality Group, to place the construction loan with The PrivateBank. The 466-room triple-branded hotel will consist of a 184-room Hilton Garden Inn, a 187-room Hampton Inn and a 95-room Home2 Suites with a shared entrance, front desk and amenities, including an indoor pool, fitness room and business center. Additionally, the 21-story hotel will feature two local restaurants and a Starbucks on the ground level, 7,000 sq. ft. of flexible meeting space and a rooftop bar and lounge.
The hotel will have direct sky bridge access into the 2.6 million-sq.-ft. McCormick Convention Center and will be connected to the four-story historic 2215 South Michigan building that will house a live entertainment venue.
Situated on a .87-acre site at 123 East Cermak Rd., the hotel will be constructed at the southwest corner of Cermak Rd. and Indiana Ave. in the city’s South Loop. The site is next door to the Motor Row District and walking distance to two different elevated train stations. The hotel will be in the developing McCormick Square sub-neighborhood and near offices, universities, hospitals, retail, restaurants and entertainment options.
Construction is already underway for the project. The hotel will be constructed by McHugh Ujamaa LLC, which is an affiliate of James McHugh Construction Co. and Ujamaa Construction Co.
HFF’s Senior Managing Director Michael Kavanau and Managing Director Danny Kaufman led the HFF debt placement team representing the borrower.