JP Morgan has provided a $420m, five-year floating-rate CMBS loan to Thor Equities for the refinancing of the Palmer House Hilton in downtown Chicago.
The loan replaces a previous $365m loan, providing a “more flexible loan structure… with a lower interest rate, resulting in millions of dollars in savings per year,” Thor said in a statement.
“Taking advantage of attractive interest rates and flexible loan terms is critical to creating a long-term successful business model in today’s hyper-competitive real estate market,” said CFO Michael Schurer.
Thor purchased the 1,642-room, 23-story hotel in 2005. The historic hotel is anchored by downtown Chicago’s State Street and Michigan Avenue and features nearly 130,000 square feet of meeting space, three food and beverage outlets (including the renowned Lockwood Restaurant and Bar), a luxury spa and fitness center.
In 1933, the Golden Empire Dining Room at Palmer House was converted for entertainment purposes. It hosted entertainers including Frank Sinatra, Judy Garland, Ella Fitzgerald, Harry Belafonte, Louis Armstrong, and Liberace.
All parties involved, including Jones Lang LaSalle, which arranged the deal, declined to comment.