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Chicago & Midwest  + Downtown  + Hospitality  | 
Hilton Chicago Magnificent Mile Suites distressed real estate

Owner of Mag Mile Hotel Property Handing Keys to Lender

A venture of Cranston, RI-based real estate investor Procaccianti has an agreement to transfer the 345-key Hilton Chicago Magnificent Mile Suites to a trustee for its lender through a deed-in-lieu of foreclosure, Crain’s Chicago Business reported. The current loan balance is just under $70 million, according to Bloomberg data. 

For Procaccianti, the pandemic hit less than seven months before its $77.2-million loan on the property was due to mature. The owners stopped making loan payments shortly after COVID brought things to a halt, Crain’s reported. Special servicer LNR Partners disclosed in July that it was working out a deed-in-lieu transaction with ownership. 

The property is one of a handful of Chicago-area hotels linked to CMBX 9, a U.S. credit-derivatives index tied to groups of CMBS loans. Hedge funds and other short sellers last year started ramping up bets on CMBX 9 because of its outsized exposure to hotel debt.

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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 13-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 15-20 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).

  • ◦Sale/Acquisition
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