May 29, 2009 – A few posts ago we told you that Aqua may have finally hooked a hotel chain for the 15 vacant floors that need to be filled. If the deal with Kimpton goes through it will certainly be a boost for the 82 story Lakeshore East tower, especially with hotel rates down and vacancies up. And now another Chicago real estate development claims to have hotel prospects. According to Crain’s, the proposed Huron to be located on 8 East Huron Street in River North may attempt to convert to a hotel instead of a 28 story Chicago condo building to avoid foreclosure.

Developer Paul Stanley announced plans in 2002 to build the luxury high-rise that would have housed only 4 units per floor with two to five bedrooms and price tags of $1 to $5 million. The building plan was to have a Zen rooftop garden, dog run and fitness center. The condos were designed with master bath saunas, fireplaces, walk-in closets and large terraces and balconies. The article stated that only 9 of the 47 luxury units went under contract and Stanley stopped marketing the Huron last June.

Stanley didn’t name any hotel chains, but says he has had several offers. “I’m fully expecting to make a deal,” he told Crain’s. “I’m trying to make lemonade out of lemons here,” Stanley explained, indicating that he needs to sell the site to pay off the loan that came due this past January. The $8.8 million foreclosure suit was filed by Geneva Capital Associates in April.

It will be interesting to see if a hotel brand does step in and purchase the Huron site. River North is a trendy neighborhood and the site would normally be a good spot for a new boutique hotel or Chicago Luxury Condos, but the timing is questionable. With an eye to a future economic and housing market recovery, a hotel chain may step in and save Stanley from foreclosure.

[tags]The Huron, Chicago Condos, Chicago Real Estate[/tags]

This entry was posted on Friday, May 29th, 2009 at 1:30 pm and is filed under Mortgage Information.