CHICAGO — A joint venture between Gencom and GD Holdings has acquired the 192-room St. Regis Chicago. The luxury hotel, which opened this week, is centrally located in the city’s Lakeshore East Loop community where the Chicago River meets Lake Michigan. While the sales price was undisclosed, JLL arranged $76 million in acquisition financing on behalf of the buyers through Värde Partners.
The five-star hotel occupies the first 11 floors within a property that also houses 393 condominium units. Studio Gang Architects designed the 101-story tower, which is the third tallest in the city. Room rates start at $711 per night at the hotel, which is the first new luxury hotel to open in Chicago since 2013.
Chicago-based Magellan Development Group oversaw development of the hotel, which is also part of Magellan’s 28-acre Lakeshore East master development. Magellan is retaining a partial ownership interest in the hotel.
Located at 401 E. Wacker Drive, the St. Regis Chicago features nearly 12,000 square feet of meeting space, including the 5,000-square-foot Astor Ballroom. There are also 7,000 square feet of executive function rooms with views of landmarks such as the Magnificent Mile, Navy Pier, and Grant and Millennium parks. More than 21,000 square feet of amenity space includes the St. Regis Spa, a fitness center with yoga and group exercise rooms, a rooftop terrace and indoor swimming pool.
The hotel also offers multiple dining experiences, including five venues totaling 580 seats and 38,000 square feet. Lettuce Entertain You Enterprises, Chicago’s largest restaurant company, is leading and managing two of the new restaurant concepts. Miru, located on the 11th floor, is a Japanese concept from Lettuce Entertain You chef Hisanobu Osaka. Tre Dita, a Tuscan steakhouse in collaboration with Los Angeles-based chef Evan Funke, is scheduled to open this fall.
The transaction marks the first addition of a St. Regis brand to each of Gencom and GD’s growing hospitality portfolios, which include brands such as The Ritz-Carlton, Ritz-Carlton Reserve, Four Seasons Hotels and Resorts, Hyatt, Rosewood, Fairmont and Auberge Resorts. The deal also marks the joint venture’s first entry into the Chicago market.
Miami-based Gencom is an investment firm specializing in the development and management of luxury resort and residential properties, alongside full-service hospitality operating platforms. Today, the Gencom portfolio comprises nearly $8 billion in assets under management.
Denver-based GD Holdings is a real estate investment company engaged in the acquisition, development, ownership and management of hotels and other commercial real estate assets.
The JLL Capital Markets team working on the acquisition financing included Eric Tupler, Jeff Bucaro, Mark DesLauriers and Jake Martin.
— Kristin Harlow