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Thor Equities, capitalizing on a strong lending environment and rising property values, secured a $427M refinancing package for the Palmer House Hilton, Crain's Chicago Business reports.
The loan replaces a $420M loan Thor Equities took out on the building in 2014 that was set to mature at the end of August. Thor has refinanced the historic 1,639-room hotel three times in the last six years. Thor Equities put the hotel on the market twice during that span, most recently in 2015. The firm sought $575M bids at that time, but opted to hold on to the building as strong tourism numbers contributed to higher revenues. Thor Equities bought the Palmer House for $230M in 2005 and completed a $131M renovation three years later.
The Palmer House's revenues peaked three years ago at $137.5M. Last year, the hotel posted $130.8M in revenue and $41.2M in net operating income. The refinancing package includes a $333.2M senior loan and $94M in mezzanine debt from JP Morgan Chase, and it is believed the bank will sell that debt on the CMBS market.
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