(CHICAGO; October 9, 2018)– Executives from Arbor Lodging Partners, MBRE Healthcare, and Metro Park are pleased to announce the acquisition of a 352-room dual-branded hotel, 93,000 square foot medical office building, and 225-stall parking garage at 150 and 160 E. Huron Street, located a block from the Magnificent Mile and directly across from the Northwestern University Medical Campus in Chicago.
The acquisition required a creative co-investment structure for three different property types. The 40-story, Class A building is vertically subdivided into medical office space (floors 7-13), two sister hotels (floors 14-40), and a valet parking garage (floors 2-6).
The 127-room Homewood Suites Chiago Downtown/Magnificent Mile and 225-room Hampton Inn Chicago Downtown/Magnifident Mile mark the fourth and fifth Hilton-branded hotels in Arbor Lodging’s current portfolio. The Homewood Suites marks the company’s ninth extended-stay property in the current portfolio.
“With our company’s roots in Chicago, it is a special moment to add our first city of Chicago property to the portfolio,” said Vamsi Bonthala, CEO of Arbor Lodging Partners. “This property appealed to us for many reasons and in particular because it allows us to invest in the dynamic growth story of Chicago’s urban core. The Hampton Inn and Homewood Suites are in one of the city’s most desirable locations, appealing to leisure, medical, and business travel.”
The two hotels will be managed by Arbor Lodging Partners’ affiliate, Arbor Lodging Management. Upon acquisition, Arbor Lodging Partners will begin execution of a $7 million renovation to upgrade rooms, common areas, and more.
"Beyond the property renovations, we look forward to investing in this dynamic property and its team," added Sheenal Patel, CEO of Arbor Lodging Management. "We are eager to begin our partnership with the hotels to further drive success to the property.”
Within a five-mile radius of the building, average occupancy for medical office space is 97%. Given the highly-desirable infill location, very limited developable parcels, and proximity to the Northwestern University Medical Campus, the offices should experience strong occupancy over a long-term period. The Northwestern campus receives over 2.5 million outpatient visits annually and is ranked the #1 hospital complex in Illinois.
“We’re excited to own and manage this well located, urban property with phenomenal healthcare tenants, including the University of Chicago Medicine, Northwestern Memorial Hospital, and the Eating Recovery Center,” says Peter Westmeyer, President of MBRE Healthcare. “We also couldn’t be happier about our continued investment in the Chicago area. The closing of this deal adds to an already robust year of growth for our company across the country.”
For more information, please visit www.arborlodging.com and www.mbres.com.
