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Chicago & Midwest  + Downtown  + Hospitality  |  July 9, 2018
Paul Bubny
By: Paul Bubny

Palmer House Joins Downtown Refi Parade

Thor Equities has added its Palmer House Hilton, Chicago’s second-largest hotel by room count, to the parade of downtown lodging properties that have refinanced in recent months. Replacing a $420-million, four-year loan that was due to mature in August, the new debt of $427-million from JPMorgan Chase comes as Chicago’s hotel sector has enjoyed a resurgence of RevPAR even with new supply coming on line.

Crain’s Chicago Business reported that the refi of the 1,639-key hotel includes a $333.2-million senior loan and about $94-million in mezzanine debt. JPMorgan is likely to repackage both tranches as CMBS. The previous mortgage, also from JPMorgan and dating from 2014, comprised a $260-million senior loan and $160-million in mezz debt.

Between the 2014 financing and the new one, Thor tried selling the Palmer House twice, most recently in 2015. The company paid $230-million for the property in 2005.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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