Blackstone’s Club Quarters Chicago Appears Headed for Foreclosure
The 429-key Club Quarters Chicago hotel in the Central Loop appears headed to foreclosure after negotiations stalled on a delinquent CMBS loan valued at $274 million, the Chicago Business Journal reported.
CWCapital, the special servicer on the loan since mid-2020, is “pursuing foreclosure” for the hotel and three other CQ hotels in San Francisco, Boston and Philadelphia secured by the loan.
Although special servers are typically appointed to help borrowers and lenders resolve loan issues, a CMBS industry report said they “were unable to reach a workout agreement.” As recently as April, the report said the parties were still evaluating options. It’s still possible foreclosure could be avoided if an agreement is reached.
The loan was originated by Bank of America in 2017 to the hotels’ owner, a Blackstone Group real estate fund. It has been on a watchlist since early in the pandemic and been delinquent for 34 months.
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