CHICAGO — Thor Equities has secured a $420 million refinancing deal for the Palmer House Hilton, a landmark hotel located in the heart of downtown Chicago. Thor acquired the 1,642-room, 23-story luxury hotel, which is located at 17 E. Monroe St., in 2005.
JLL represented Thor Equities in refinancing the existing $365 million loan, moving to a more favorable $420 million loan with a lower interest rate. JP Morgan provided the five-year, floating-rate CMBS loan. The refinancing deal provides Thor Equities with a significantly more flexible loan structure.
“Taking advantage of attractive interest rates and flexible loan terms is critical to creating a long-term successful business model in today's hyper-competitive real estate market,” says Michael Schurer, CFO of Thor Equities.
The Palmer House Hilton is located near the Art Institute of Chicago, Millennium Park and State Street Shopping, a destination shopping strip including retailers such as Puma, H&M, Nordstrom Rack, Urban Outfitters and Forever 21. State Street draws millions of shoppers annually with an annual retail sales volume approaching $1 billion.
The hotel was rebuilt in 1873, after it burned down in the Great Chicago Fire days after its grand opening. In recent years, the hotel has undergone a $170 million renovation to its guestrooms and suites that now feature contemporary design elements and amenities styled after the historic Chicago hotel lineage.
Thor Equities provides urban real estate development, leasing and management services. The global company pursues premier hotel, commercial, residential, retail and mixed-use assets in high-density areas.
Through its brokerage affiliate, Thor Retail Advisors, it is also a leasing agent for third-party property owners and represents global retailers in their search for prime urban locations in North America, Europe and Latin America.
— Danielle Everson