Strong sponsorship and existing relationships with lenders will continue to dictate how construction loans are issued in the new year. Yesterday, Oxford Capital Group announced it landed a $170M construction loan for its Essex Inn redevelopment in the South Loop. It's the third nine-figure construction loan for a Chicago construction project issued in the past month. Related Midwest was granted $240M in construction financing for One Bennett Park in early December, and Sterling Bay scored a $209M construction loan for its McDonald's HQ development in the West Loop on Dec. 19.
Oxford bought the 254-room Essex Inn in 2014 as an adaptive reuse play and was issued a demolition permit for the hotel's parking garage and swimming pool last October.
Oxford will build a 56-story, 479-unit apartment tower and is expanding the hotel to 271 rooms with modern amenities including a rooftop bar and a connecting winter atrium garden (rendering shown).
Starting in late 2018, Oxford will rebrand the property as the Hotel Essex. The development is expected to deliver in early 2019. Oxford's partner in the project is Quadrum Global. The two firms have JV'd on the Godfrey Chicago and are working together to reposition the former Atlantic Bank Building at 168 North Michigan into a boutique hotel.
Mission Capital Advisors' Jordan Ray, Ari Hirt, Steven Buchwald and Jamie Matheny helped secure the financing from a global investment bank.
