Nobu Hotel Developers Need $52M To Continue Construction
The Nobu Hotel Chicago, one of the most highly touted projects in the latest wave of Fulton Market development, is facing another setback. Construction of the 11-story hotel ground to a halt and developers are scrambling to secure financing to finish the $73M project, Crain's Chicago Business reports. Work was moving along since the Buildings Department issued a full construction permit for the development in August.
Mark Hunt's M Development was self-financing the development, and the cessation of construction revealed M Development did not have a construction loan in place when work began. Hunt now needs a $52.5M loan to complete construction. M Development retained Aries Conlon Capital to solicit offers, and Aries Conlon principal Sean Conlon said the project already has interest from lenders, term sheets in hand.
The project's location and Fulton Market's growing status as a hotel submarket may help it land financing even though the Nobu Chicago has been slow to move forward. The development broke ground in June 2016, three months before the Chicago Plan Commission OK'd the development. The general contractor, Centaur Construction, stopped work on two separate occasions recently because of payment issues.
M Development is building the project in partnership with Nobu Hospitality, the restaurant group from celebrity chef Nobu Matsuhisa. Actor Robert De Niro is an investor in Nobu Hospitality.