On behalf of Thor Equities, Jones Lang LaSalle and Jones Lang LaSalle Hotels announced the firm’s Capital Markets professionals have secured a $365 million financing package for a the Palmer House Hilton in. JP Morgan provided the floating-rate financing. The Palmer House Hilton is a 1,639-room, full service, luxury trophy asset located in the “Loop” of downtown Chicago.
Executive Vice President Matt Comfort and Senior Vice President Keith Largay led the team on this transaction, along with Managing Director Dave Hendrickson and Vice President John Nugent.
“The strong cash flow of the Palmer House Hilton was integral to securing financing for the loan,” said Comfort. “This historic landmark and an irreplaceable trophy asset recently underwent a comprehensive renovation that strengthened its operating performance and market positioning.”
Added Largay, “A loan this size has inherent complexities. JLL ran a targeted process that created options for Thor and allowed us to achieve the best terms in the market.”
“This refinancing with allow Thor Equities to continue and augment its ongoing efforts to maintain the Palmer House’s status as a crown jewel of Chicago,” said Joe Sitt, CEO of Thor Equities.
Thor Equities acquired the Palmer House Hilton in August 2005 after more than 60 years of owner operations by HiltonCorp. The property is situated on two-thirds of a city block within the Loop, with the entrance on Monroe Street and frontage on State Street and Wabash Avenue. The 24-story main building is comprised of the 1,639-room hotel sitting atop a 57,000-square-foot, street-level retail arcade, a 177-space underground valet parking garage and a full basement. In October 2008, Thor completed a $131 million renovation that resulted in numerous infrastructure improvements, refurbished guestrooms, public spaces and meeting spaces and a number of food and beverage operations.