Mesa West Capital has provided Chicago-based real estate developer Sterling Bay with $48 million in mortgage debt to refinance The Talbott Hotel, a boutique lifestyle hotel, also in Chicago. Included in the financing is $7 million in mezzanine debt.
PRESS RELEASE
Chicago, IL (January 31, 2018) – Mesa West Capital has provided a Sterling Bay partnership with $48 million in short-term first mortgage debt to refinance The Talbott Hotel, a 178-room boutique lifestyle hotel in Chicago. The financing included $7.0 million in mezzanine debt that was placed at closing.
After acquiring the 16-story hotel in the fall of 2015, Sterling Bay successfully executed an extensive capital program to rebrand the property as a luxury boutique hotel within Chicago’s popular Gold Coast submarket. Improvements included a complete renovation of the lobby, common areas and guest rooms, reconfiguration of the first floor and the addition of a new restaurant, fitness center and 29 new guest rooms. The hotel reopened in May 2017. The collateral also included an adjacent 2,200-sf retail parcel where Sterling Bay signed a long-term lease with Danish juice and coffee shop, Joe and the Juice.
Mesa West’s floating rate, non-recourse loan will allow Sterling Bay time to stabilize the hotel over the course of the five-year loan term, according to Mesa West Vice President Matthew Snyder who originated the loan along with Associate Brian Hirsh out of the privately held portfolio lender’s Chicago office.
“The opportunity allowed Mesa West to lend on a high-quality, newly renovated product in the desirable Gold Coast submarket. Sterling Bay is one of the most innovative and respected real estate developers in Chicago, and Mesa West is pleased to continue the long standing relationship,” said Snyder.
The Talbott Hotel is located at 20 East Delaware Place in the heart of the Gold Coast. It is nearby the lakefront and Chicago’s top restaurants, and retailers along the Magnificent Mile, which adds to the allure for domestic and international travelers to Chicago, according to Snyder.
About Mesa West Capital, LLC
Mesa West Capital (www.mesawestcapital.com) is a privately held debt fund manager and portfolio lender with more than $4.5 billion in assets under management. With offices in Los Angeles, Chicago and New York City, Mesa West has been one of the leading providers of commercial real estate debt since its founding in 2004. Mesa West provides non-recourse first mortgage loans for core/core-plus, value-added or transitional properties throughout the United States. Mesa West’s lending portfolio includes all major property types with loan sizes ranging from $20 million up to $300 million. Since inception, the firm has sourced and closed more than 245 transactions totaling in excess of $10 billion.
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