Posts Tagged ‘River North’

Westin River North Hotel Sale Proves Neighborhood’s Viability

Tuesday, August 24th, 2010

No recession in River North: the 424-room Westin Hotel sells for $165 million.  A sign of Chicago’s River North neighborhood’s inherent commercial strength is the recent $165 million sale of the 424-room Westin River North Hotel at 320 North Dearborn Street.  The purchase price was approximately $389,000 per room, an excellent price considering that the hotel market nationally has struggled.  The price was 37 percent higher than Tishman Realty & Construction paid for the riverfront property 10 years ago.

According to Tishman, they “decided to take advantage of the pent-up (investor) demand for high-quality, performing hotel assets.”  Since Tishman purchased the hotel, it has “posted strong returns and consistently outperformed its competitors.”

The purchaser is Host Hotels & Resorts, Inc., an East Coast-based real estate investment trust, which owns a six-property Chicago-area portfolio.  Their Chicago hotel portfolio includes the Embassy Suites Hotel at 511 North Columbus Drive; the Swisshốtel at 323 East Wacker Drive; and the Courtyard at 30 East Hubbard Street.

Downtown Chicago Rental Apartments Thriving

Monday, August 31st, 2009

Downtown Chicago apartment buildings – especially Class A properties – are seeing a resurgence in occupancy and rental rates as residents apprehensive about the condominium market choose to rent rather than buy.  The average effective rent of downtown apartment buildings climbed to $2.17 PSF in the second quarter, a 2.4 percent increase over the first quarter, according to a report by Appraisal Research Counselors, a real estate consulting firm.  During the same time frame, average Class A occupancy rose to 93.4 percent, as compared with 90.9 percent in the first quarter and 91.6 percent a year ago.chicagoskyline1

The statistics would be even better if there weren’t so many new downtown apartment buildings.  More than 2,098 new units have been built downtown since 2008.  Add to that the shadow rental market – condominium owners who rent their units when they cannot sell.  Many potential buyers are renting for the time being because they are concerned about falling property values and the possibility that they will be unable to obtain a mortgage in a tight credit market.

These numbers show the inherent strength of Chicago’s CBD rental apartment market — proof that downtowns continue to thrive because of the number of highly educated knowledge workers who want to live in the city.  As a result, places like River North and the Loop remain highly sought after locations for businesses looking to recruit talent.

The Alter Group’s One11 West Illinois Street Receives Praise from the Chicago Tribune’s Blair Kamin

Thursday, December 11th, 2008

The Alter Group’s One11 West Illinois Street, its 10-story, 227,604 SF Class-A-to-own office building in downtown Chicago’s dynamic River North neighborhood recently received a rave review and from the Chicago Tribune’s Pulitzer Prize-winning architectural critic Blair Kamin. Kamin praised architect Martin F. Wolf, Senior Principal with Solomon Cordwell Buenz & Associates, who “was challenged with a particularly daunting hurdle:  a pair of ungainly, three-story buildings whose owners didn’t want to sell.  The two holdouts created a seemingly unusable panhandle at the western end of Alter’s otherwise rectangular plot.  But Wolf and his colleagues…took the leftover space and transformed it into something dramatic:  a prow-like edge that resembles the front end of a ship ready to steam across LaSalle.”

According to Kamin, “Instead of cramming the problem panhandle with a stubby rectangle of office space, Wolf sliced the building on a diagonal and opened a triangular outdoor plaza in the bargain.  But the slicing yielded that eye-catching glass prow.  It’s displayed, like a jewel within a setting, inside an exposed steel framework that extends beyond the building proper.”

Kamin continued:  “Its highly articulated corner captures the eye of the passerby with its play of light and shadow, solid and void, transparency and reflectivity.  Look closely, and you can see a moiré effect on the mesh.  Step inside the recess between the prow and the mesh, and you are treated to an upward look at the trapezoid-shaped metal grates that form platforms for lights that shine on the prow at night.”

It is heartening to see architecture on a mid-rise office building recognized.  One11 West Illinois Street’s anchor is the Erikson Institute, one of the nation’s leading graduate schools dedicated to the education of child-development professionals, which occupies approximately 75,000 SF.