$90M Bids Sought For Under-Construction Ace Hotel Chicago
The experts at our hospitality event last week predicted a flat year for hotels in 2017, but that hasn't stopped boutique hotel developers from seeking bids on their assets. Case in point: Sterling Bay retained HFF to seek buyers for the Ace Hotel the firm is building in Fulton Market.
The 159-room hotel won't open until spring 2017, but Sterling Bay believes the Ace brand and out-of-town investor interest in one of Chicago's most active real estate submarkets will be more than enough to buck the trends of slightly disappointing trades like last month's $87M sale of the Hotel Allegro. Sterling Bay is seeking $90M for the Ace, according to Crain's.
Sterling Bay and Fulton Market have gone hand-in-hand the past three to four years, but the firm has been selective in its dispositions in the neighborhood and has made nice ROI on sales thanks to out-of-town investor interest in the neighborhood. The Feil Org paid Sterling Bay $35M for a portfolio of retail assets along Fulton Market and Randolph streets in October. And we can't forget American Realty Advisors' $257M acquisition of 1KFulton from Sterling Bay last June. [Crain's]