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The Prime Group, Inc. is pleased to announce its latest development project, The Reserve Hotel, located at 208 South LaSalle Street. The Reserve Hotel, a member of Marriott’s Autograph Collection, is a 234-room luxury hotel occupying the top five floors of a historic landmark building. The Reserve Hotel began construction in late 2018, and is expected to open in late 2020.
The Reserve Hotel features a unique story and position in the Chicago hospitality market. The 208 South LaSalle building, originally designed by world-renowned architect Daniel H. Burnham, was intended by Burnham to be a “monument to commerce” with a stature equal to public institutions, government oﬃces and libraries.
With its location in a historic oﬃce building and in the heart of Chicago’s financial district, next door to the Federal Reserve Bank of Chicago, the design, finish and artwork throughout The Reserve Hotel will reflect the building’s history and the story of the LaSalle Street financial district.
The entity developing The Reserve Hotel is RCP Hotel Owner, LLC (“RCP Hotel”), an affiliate owned and controlled by Michael W. Reschke and The Prime Group, Inc. RCP Hotel owns floors 18 thru 22 of 208 South LaSalle Street Chicago, Illinois. Currently the middle floors of this historic building (13-17) are fully-leased to office tenants and the lower floors (1-12) contain the much acclaimed 610-key J.W. Marriott hotel which opened in November 2010.
The EB-5 investment vehicle is RCP Hotel EB-5 Investors, LLC (“RCP Investors”). The general partner of RCP Investors is RCP EB-5 Manager, LLC (“Manager”). EB-5 investors will receive a preferred return on their investment 0.5% annually. RCP Investors intends to fund a loan up to $30,000,000 bearing interest at 3.5% to RCP Hotel to partially fund the development costs of The Reserve Hotel.
The project capitalization shall consist of $65 million of senior first mortgage construction financing (the “Senior Financing”), a $30 million loan provided by the EB-5 investment entity, and $13.2 million of owner equity. The EB-5 loan will be for a term of five years and shall bear interest at 3.5%.