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News release


Trophy Palmer House Hilton Proves Major Draw for Lenders

JLL secures $420M in refinancing

CHICAGO, Aug. 27, 2014 – High liquidity in today’s debt markets paired with historically low interest rates have many investors turning toward refinancing options on their assets. On behalf of Thor Equities, LLC, JLL’s Hotels & Hospitality experts today announced the firm has structured a $420 million refinancing for the Palmer House Hilton in Chicago. JP Morgan provided the 5-year, floating-rate, CMBS loan.

Executive Vice President Keith Largay and Senior Vice President Matt Nowaczyk led the JLL team on the transaction, with Americas CEO and Managing Director of JLL’s Hotels & Hospitality Group Arthur Adler, Managing Director Adam McGaughy and Senior Vice President John Nugent providing market expertise. JLL previously financed the hotel in 2012.

“Thor Equities, LLC was able to capitalize on the market’s very attractive interest rates while the lending community was presented with an incredible opportunity to invest in a landmark asset backed by best in class sponsorship and the Hilton brand,” said Nowaczyk. “Having received significant capital renovations in recent years, the Palmer House Hilton delivers impressive returns and is one of Chicago’s most desired hotel destinations.”

 “The capital markets have changed dramatically since the 2012 financing.  Thor was able to dramatically lower their interest rate, slightly increase their loan amount, and create a far more flexible loan structure,” said Largay. “With the improvement in the capital markets, lenders aggressively bid on this trophy financing assignment.  Other real estate investors should be actively considering financing scenarios given the interest rate environment and flexible loan terms. ”

The 1,642-key, 23-story hotel is anchored by downtown Chicago’s State Street and Michigan Avenue, near the city’s largest employers, world-famous retailers, dining options and cultural attractions. It features nearly 130,000 square feet of flexible meeting space, three food and beverage outlets including the renowned Lockwood Restaurant and Bar, a luxury spa and fitness center.  

JLL’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm’s 300 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US $36 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.

For more news, videos and research from JLL’s Hotels & Hospitality Group, please visit: or download the Hotels & Hospitality Group’s iPhone app or iPad app from the App Store.

About JLL

JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $50.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit