The financing, which includes both senior and mezzanine loans, was used to pay off a $68 million construction loan and an undisclosed amount of preferred equity from Goldman Sachs that backed Prime Group s nearly $140 million redevelopment of the historic building into the 381-room hotel that opened in 2015, Reschke said.
The previous loan was taken out in 2013 and matured last year, forcing Prime Group to refinance in the midst of a crisis that has stunned the hospitality industry and made it especially difficult for lenders to accurately value hotels.
Reschke declined to share details about the lenders or the new loan, which has not been recorded in Cook County property records. But his firm becomes one of the only downtown hotel owners to refinance a property in the 11 months since the pandemic put a brick on travel demand.