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News release


Jones Lang LaSalle Secures $158.5 Million Senior Debt Financing for Sheraton Chicago Hotel & Towers

Financing will recapitalize property owned by Tishman Hotel & Realty

CHICAGO, JULY 22, 2010 – Working with Tishman Hotel & Realty, Jones Lang LaSalle has secured $158.5 million in senior debt financing from Goldman Sachs Real Estate Mezzanine Partners for the refinancing of the Sheraton Chicago Hotel & Towers, a 1,209-room, full-service, convention hotel located in the heart of downtown Chicago.  The floating rate loan provides Tishman with excellent flexibility and attractive pricing.

Leading the Jones Lang LaSalle team on this transaction was Real Estate Investment Banking Senior Vice President Mathew Comfort and Jones Lang LaSalle Hotels Executive Vice President Jeffrey Davis. 

“With the capital markets becoming increasingly more liquid, debt financing for a trophy asset such as this has become appealing to lenders seeking safe financing opportunities,” said Comfort.  “This is one of the largest single-asset hotel loans in the United States in the past two years—the entirety of which was funded by a single financial institution.  It’s an indication that we are seeing positive momentum in the debt capital markets with respect to hotels.  The Goldman Sachs team was able to work collaboratively with THR and other parties involved in the deal to close the loan on the target date.”

Added Davis, “This was truly a joint effort with Tishman Hotel & Realty to secure financing for this asset.  As one of the nation’s leading hotel real estate companies, they made a coordinated effort to implement cost containment measures at this hotel that augmented net operating income.  That, combined with a history of strong cash flow, allowed THR to obtain attractive loan terms on a large asset with a ground lease in place.”

The Sheraton Chicago Hotel & Towers stands 34 stories above the Chicago River, overlooking the city skyline and Lake Michigan.  It is located approximately four miles from McCormick Place Convention Center, two blocks from the “Magnificent Mile,” and five blocks from Navy Pier.  The property features 20,000 square feet of flexible meeting space including the largest ballroom in the Midwest, an executive conference center, six distinct food and beverage outlets, an indoor swimming pool and health club, a club-level lounge and business center, a gift shop, and a 420-space, on-site, underground parking garage.  Tishman Hotel & Realty built and developed the hotel in 1992 and has owned it since that time.

About Jones Lang LaSalle Capital Markets

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. Our in-depth local market and global investor knowledge delivers the best-in-class solutions for our clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In the last three years, Jones Lang LaSalle Capital Markets completed more than $143 billion transactions globally. Our Capital Markets team comprises approximately 1,500 specialists, operating in 180 major markets worldwide.
About Jones Lang LaSalle Hotels

Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2009, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on over $1.6 billion worth of transactions globally. In addition, advisory and valuation services were provided on nearly 800 assignments. The global team comprises over 200 hotel specialists, operating from 36 offices in 19 countries. The firm's advice is supported by a dedicated global research team, which produced 80 publications in 2009 in addition to client research. Jones Lang LaSalle Hotels' services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels' clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL).

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 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 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 approximately $40 billion of assets under management. For further information, please visit our Web site,