Walker & Dunlop Inc. has arranged $92 million to refinance the Hiltons at McCormick Place, a 23-story, 466-key tri-branded hotel connected to the McCormick Place Convention Center in Chicago.
Walker & Dunlop New York Capital Markets, led by Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Dustin Stolly, Jordan Casella and Cole Grims, arranged the loan on behalf of McHugh Enterprises Inc. and First Investors LLC, with Access Point Financial Inc. providing the capital for the floating-rate, interest-only loan.
Jay Morrow and Carter Gradwell of Walker & Dunlop Hospitality partnered alongside the Capital Markets team to advise McHugh Enterprises Inc. and First Investors LLC throughout the process.
The Hiltons at McCormick Place is the first and only tri-branded Hilton select-service property in the U.S., combining Hilton Garden Inn, Hampton Inn and Home2 Suites offerings. Amenities include two hotel-operated food and beverage outlets, three fully leased ground-floor food and beverage offerings, an indoor pool and a fitness facility, as well as direct access to the McCormick Place Convention Center via an attached skybridge.
Located in Chicago’s South Loop, the property is adjacent to and connected with McCormick Place, the largest convention center in North America and the Western Hemisphere. The convention complex welcomes approximately 3 million visitors annually, generating more than $2.3 billion in annual economic impact.
“The Hiltons at McCormick Place is a highly efficient hospitality investment, delivering strong cash flow and outperforming its submarket peers running a +120% RevPAR Index,” said Appel, senior managing director, Walker & Dunlop. “Performance is driven by surging convention center demand and the exceptional recovery and forward momentum of the Chicago Central Business District hotel market, which has seen a 13% year-over-year RevPAR increase.”
Patty McHugh, chairman/owner, McHugh Enterprises and affiliated companies, said, “As a long-time stakeholder in this property, McHugh Enterprises Inc. is proud to see the Hiltons at McCormick Place continue to thrive. Built by our general contracting arm, James McHugh Construction Co., this project holds special meaning for our team. We appreciate the steady partnership and expertise Walker & Dunlop brought to the refinancing process.”
