Posted 12/3/2009 - 10:10:23 AM
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CHICAGO—Displaying an ability to navigate the realm of commercial mortgage-backed securities servicing, Canyon Capital Realty Advisors has acquired Hotel 71, a 437-room, 40-story hotel on Wacker Drive in Chicago. Canyon Capital purchased the asset for an undisclosed price through its Canyon Value Opportunity Fund.
Canyon acquired the property in an all-cash deal from a real estate mortgage investment conduit. The hotel had been a security for a senior loan that was included in a CMBS pool until it was acquired as “real estate owned” (REO) in July of 2008. Canyon Capital negotiated the purchase with the asset’s special servicer and received approval from the controlling note holder of the former senior loan and the REO asset.
Canyon Capital now plans on repositioning the hotel and renovating its guestrooms, restaurant, bar and public spaces. It will also remodel and expand the hotel’s meeting facilities.
