Michael W. Reschke And The Prime Group, Inc. Secure $141M Refinancing For Residence Inn Chicago Downtown/Loop
CHICAGO—Prime LaSalle/Madison Partners, LLC (“PLMP”), the owner of the 381-key Residence Inn Chicago Downtown/Loop located at 11 S. LaSalle has announced the closing of $141 million of new senior and mezzanine loan financing for the hotel. PLMP is owned and controlled by The Prime Group, Inc. and Michael W. Reschke, the founding shareholder, Chairman, and Chief Executive Officer of The Prime Group, Inc.
The award-winning Residence Inn Chicago Downtown/Loop opened in September 2015 to much acclaim, being the largest and most luxurious Residence Inn in the world. The hotel was the recipient of Marriott’s annual “Halo Award” in 2005. The hotel was developed as part of the adaptive reuse of the 38-story Roanoke Building & Tower, a historic landmark tower built in three phases from 1915 to 1925, originally designed by Holabird & Roche with the final phase designed by Andrew Rebori.
Proceeds of the financing were used to repay the senior loan and preferred equity financing originally funded to acquire and construct the hotel, to establish reserves for working capital, interest, and certain other items and to pay fees and transaction costs.
“Based on the quality, location, and historical performance of the hotel, we were very fortunate to secure attractive financing in spite of the tumultuous times facing the hospitality industry,” stated Michael W. Reschke, CEO of Prime. “This new financing was structured to give time for the hotel to fully recover over the next two years, a time period we conservatively estimate may be required before the pandemic is eradicated and the hospitality industry fully recovers. However, we remain confident that with the wide dissemination of two vaccines, the hospitality market will begin a more rapid recovery by this summer and achieve near full recovery in twelve to fifteen months.”