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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.
- ◦Sale/Acquisition
