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German Firm Buys LondonHouse For $315M

Foreign investment in Chicago real estate is a major story in recent weeks. Hot on the heels of CIC partnering with LaSalle Investment Management on a $547M deal for AMA Plaza comes news that Oxford Capital Group sold LondonHouse, its highly anticipated hotel redevelopment, to a German firm for mid-nine figures.

Hamburg-based Union Investment Real Estate paid $315M for the hotel in the London Guarantee Building, Crain's reports. It's the perfect time for Oxford to cash out on LondonHouse. Oxford CEO John Rutledge told Bisnow in December he sees downtown hotel development shifting south and predicted only modest RevPAR growth moving forward as convention business, the explosion of the Millennial workforce and hotel supply will moderate it.

Oxford will retain ownership of the project's 28k SF of retail, and signed a 25-year leaseback and will manage the hotel. [Crain's]

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