Thursday February 27th, 2014 - 9:47AM
CHICAGO—Ashford Hospitality Prime acquired the Sofitel Chicago Water Tower for $153 million, the first luxury-hotel transaction in the Windy City in several years.
Jones Lang LaSalle Hotels & Hospitality Group arranged the sale on behalf of The Blackstone Group.
JLL also secured $80 million of acquisition financing on behalf of the property’s new owners.
The sale, at approximately $369,000 per key, represents the largest single-asset hotel transaction in Chicago since 2012, according to JLL.
Managing Director Adam McGaughy and SVP John Nugent led the JLL team on the transaction. EVPs Bill Grice and Keith Largay led the financing effort.
McGaughy stated, “This transaction is reflective of the strong interest from institutional groups seeking high-quality hotel investments in downtown Chicago.”
The 32-floor, 415-key hotel is located at 20 East Chestnut St. in the Gold Coast neighborhood. It is one block west of the Magnificent Mile and proximate the city’s corporate, convention and leisure markets. Designed by French architect Jean-Paul Viguier, the prism-shaped building features floor-to-ceiling windows and offers views of the skyline and Lake Michigan.