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JP Morgan provides senior financing for 1,639-room trophy, full service, luxury hotel
CHICAGO, IL, Nov. 13, 2012 — On behalf of Thor Equities, Jones Lang LaSalle and Jones Lang LaSalle Hotels today announced the firm’s Capital Markets professionals have secured a $365 million financing package for a the Palmer House Hilton in Chicago. JP Morgan provided the floating-rate financing. The Palmer House Hilton is a 1,639-room, full service, luxury trophy asset located in the “Loop” of downtown Chicago.
Executive Vice President Matt Comfort and Senior Vice President Keith Largay led the team on this transaction, along with Managing Director Dave Hendrickson and Vice President John Nugent.
“The strong cash flow of the Palmer House Hilton was integral to securing financing for the loan,” said Comfort. “This historic landmark and an irreplaceable trophy asset recently underwent a comprehensive renovation that strengthened its operating performance and market positioning.”
Added Largay, “A loan this size has inherent complexities. JLL ran a targeted process that created options for Thor and allowed us to achieve the best terms in the market.”
“This refinancing with allow Thor Equities to continue and augment its ongoing efforts to maintain the Palmer House’s status as a crown jewel of Chicago,” said Joe Sitt, CEO of Thor Equities.
Thor Equities acquired the Palmer House Hilton in August 2005 after more than 60 years of owner operations by Hilton Hotels Corporation. The property is situated on two-thirds of a city block within the Loop, with the entrance on Monroe Street and frontage on State Street and Wabash Avenue. The 24-story main building is comprised of the 1,639-room hotel sitting atop a 57,000-square-foot, street-level retail arcade, a 177-space underground valet parking garage and a full basement. In October 2008, Thor completed a $131 million renovation that resulted in numerous infrastructure improvements, refurbished guestrooms, public spaces and meeting spaces and a number of food and beverage operations.
About Jones Lang LaSalle HotelsJones Lang LaSalle Hotels is a global real estate services firm focused exclusively on hotels & hospitality. We provide acquisition and financing advice, valuations, investment sales and asset management for luxury hotels, select service and budget hotels, smaller hotels and pubs, from single assets to large portfolios and mixed-use developments.
In the last five years we completed nearly 4,000 advisory and valuation assignments and more sale, purchase and financing transactions than any other hotels real estate firm in the world…worth over $30 billion. With 42 offices in 20 countries, no other firm is better connected. Through our depth and breadth of research and experience we know the market at every level, we know the players and we know how to get results. www.joneslanglasallehotels.com.
About Jones Lang LaSalle Jones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management. For further information, please visit www.joneslanglasalle.com. For more news, videos and research resources on Jones Lang LaSalle, please visit the firm’s U.S. media center Web page. Bookmark it here: http://www.us.am.joneslanglasalle.com/UnitedStates/EN-US/Pages/News.aspx
About Thor EquitiesThor Equities is a leader in urban real estate development, leasing and management, pursuing premier retail and mixed-use assets in high-density areas. Thor Equities provides the best possible “High Street” retail and mixed-use building environments throughout the urban landscape across the United States, Latin America and Europe – all while delivering attractive, risk-adjusted returns to investors.
The Thor Equities team delivers optimum results – assessing the most efficient way to operate a property to generate returns for investors by recognizing potential, reducing operating expenses, increasing tenant satisfaction, and leveraging market trends to maintain a property’s long-term competitive edge. The goal is to provide an unmatched "lifestyle" experience for the end user, whether it be living, working or shopping. Simply put, Thor Equities matches the people, the capital and the expertise to achieve unparalleled results.