There's been a flood of refinancing activity in Q4, as speculation persists that the Fed will finally raise interest rates. The latest deal involves a $115M loan taken out by Friedman Properties and White Lodging Services for three downtown hotels.
The refinancing package covers three hotels at the corner of Illinois and Clark streets in River North: the Aloft Hotel, Hyatt Place Chicago Downtown (pictured) and Fairfield Inn & Suites. With hotel values higher than they've been in years, the Friedman-White JV used the loan from Prudential Mortgage Capital to pay off a $94M construction loan taken out on the projects five years ago, according to Crain's. That means Friedman and White Lodging pocketed $21M.
This latest refinancing follows a flurry of financing packages by Mesa West across the Chicago market, totaling $265M. [Crain's]
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