American Street Capital (“ASC”) has arranged $10.7 million loan for the 63-room Ivy Boutique Hotel on Chicago’s Magnificent Mile. The loan was originated by Igor Zhizhin, the President of ASC.
The sponsor required a fast close with a large cash out to negotiate and consolidate debt associated with the property and other assets. The loan also required an initial interest reserve to meet his strategy of repositioning the asset with a new management company. In less than three weeks from the application, the loan closed with a competitively priced 12-month interest only structure that included an initial five months of interest reserve. ASC placed the loan with a correspondent debt fund.
The Ivy was an adaptive re-use of a mid-rise office building, opened as a boutique, luxury hotel in 2012. Designed in a contemporary European style, the Ivy has the largest average room size in the Chicago market with 32 studios at 315 square feet and 11 large, 675-square-foot, one-bedroom suites. The 15-story property offers a beautiful rooftop deck, food service, two banquet halls and spa services. It is located in the heart of the most desirable location in Chicago for dining, shopping, and entertainment.
