Mag Mile Doubletree Hotel Hit With $92M Foreclosure Suit
Chartres Lodging Group's pre-2008 decisions continue to haunt the firm. Chartres, which lost two Chicago hotels to foreclosure, was hit with a third suit for a Streeterville hotel.
Related Cos filed a $92.1M foreclosure suit on the Doubletree Chicago Magnificent Mile, a 500-room hotel at 300 East Ohio, Crain's reports. A Chartres venture paid $80M for the property in 2007, and spent another $21M on renovations and converting it from a Holiday Inn to a Doubletree. Capmark Bank loaned Chartres $91M for the acquisition, and there was $78M in principal owed when Deutsche Bank bought the debt as part of a larger Capmark portfolio. Chartres defaulted on the debt in February 2014, but Deutsche Bank didn't take action until after a forbearance agreement expired in May, and sold the loan to a Related venture in October.
Chartres previously lost the Allerton Hotel on Michigan Avenue in 2010, after defaulting on $80M in debt. Stabilis Capital Management filed a $59M foreclosure suit on the Chartres-owned Inn of Chicago Hotel in January. A bankruptcy judge last month declined to block that suit, paving the way for Stabilis to seize control of the hotel. [Crain's]