CHICAGO A partially-build Staybridge Suites project in downtown Chicago, stalled since being foreclosed on in October 2008, may be moving closer toward completion.
Oxford Capital Group LLC has acquired the construction loan on the 16-story building in the River North neighborhood. The purchase price has not been disclosed.
While Oxford aims to take over and complete the 216-key hotel, another investor, Corporex Cos. LLC, purchased a US$8 million claim on the development from its general contractor last year, Chicago Real Estate Daily reports. Corporex, which holds the senior debt, has its own development plans for the hotel, and observers expect the two investment firms to wind up in court over the project.
“We are working closely with counsel to resolve the foreclosure litigation between the original parties and look forward to ultimately finishing this architecturally distinctive development,” Oxford CEO John Rutledge tells CRED.
If the project comes to fruition, there is no guarantee it would still open under IHG’s extended-stay brand. Virgin Hotels is among several companies that have expressed interest in flagging the building.
Oxford has stakes in at least three other Chicago hotels. It owns the 225-key Hotel Felix and is an investor in the 174-key Hotel Cass. Additionally, it is the lead developer of a planned 330-key Langham Hotels International property to be located in the former IBM Building.