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River North Hotel Trades to JPMorgan Unit
Denihan Hospitality Group has sold the James Hotel in River North to JP Morgan Chase’s Junius Real Estate Partners. Junius reportedly acquired the 297-key property for $83.1 million, a discount of 39% on the $136.6 million that New York-based Denihan paid in early 2008.
Even as downtown hotels in general have benefited from Chicago’s uptick in tourist and business travel since the downturn that began in the fall of 2008, the James has struggled, Crain’s Chicago Business reported. Denihan defaulted on $125 million in loans on the property in 2012, but avoided foreclosure by working out a restructuring and finally refinanced the hotel in 2014.
Along with increasing competition from newer boutique or lifestyle hotels, the James suffered a blow when celebrity-chef David Burke’s Primehouse restaurant closed its doors at the hotel last year. Revenues at the hotel in 2017 declined 21% from 2016.
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- ◦Sale/Acquisition
