The House of Blues Hotel in the Marina City complex is going up for sale, as rising room rates and occupancies continue to lure investors to pay premium prices for downtown lodging properties.
The trendy hotel is owned by a venture that includes Los Angeles-based HOB Entertainment Inc., which would retain the namesake nightclub. Bidding for the 370-room property is expected to be vigorous, with the price exceeding $200,000 a room, or more than $75 million, sources said.
But the total price will be substantially higher than that because included in the sale would be Marina City’s 900-car public garage and 120,000 square feet of retail space.
Secured Capital Corp. has been hired to market the hotel, which would retain the House of Blues name, sources said.
Patrick Deming, a managing director with Los Angeles-based Secured Capital, declined to comment on the assignment.
Glenbrough sells buildings: In a roughly $15 million deal, Chicago-based Transwestern Investment Co. last week purchased Columbia Centre II, a 150,100-square-foot office building in Rosemont that is about 65 percent leased, sources said.
Meanwhile, Los Angeles real estate investment firm Colony Capital LLC will buy Oakbrook Terrace Corporate Center III, sources said, though the exact status of the deal could not be determined. The price is about $115 a square foot for the 232,000-square-foot building, which is about 72 percent leased.
In both transactions real estate firm CB Richard Ellis Inc. represented the seller, California-based Glenborough Realty Trust. Company representatives could not be reached for comment.
South Side deal: Archon Group LP is acquiring a majority interest in a proposed 450,000-square-foot retail center in the South Side Chatham neighborhood.
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Chicago-based Monroe Investment Partners, which began the project in 2003, is keeping a stake in the nearly $118 million development, said Curt Bailey, director of Midwest retail investment for Archon, a unit of Goldman Sachs Group Inc.
The 50-acre site, located at 8301 S. Stewart St., is a shuttered steel processing plant, but a $31.6 million tax increment financing grant is expected to set the stage for construction.
Anchor retailer Lowe’s Cos. would own its 170,000-square-foot home improvement store, as would a second, 95,000-square-foot retailer.
Archon’s cost for the balance of the project would be nearly $74 million.
Suburban recovery: The amount of available top-quality Class A suburban office space fell to 20.5 percent in the third quarter, compared with 21 percent in the second quarter and 23.4 percent in the third quarter of 2004, according to a report by the tenant representative Studley Inc. Sublease space is included.
Yet new construction could slow an overall recovery in the market, said Laurence Morgan, executive vice president with Studley’s Chicago office. About 500,000 square feet of new office space could be added in the next 18 months, he said.
Chicago’s Turning the Tide Inc., a local non-profit group raising money for the relief efforts for Hurricane Katrina victims, is holding its second fundraiser Wednesday night.
Pearl Jam and Robert Plant will play a benefit concert at 9 at the Chicago House of Blues, 329 N. Dearborn St. About 200 tickets, at $1,000 apiece, are left, said Robert Chodos, a key organizer of the group, which was formed by many members of the local commercial real estate industry. Tickets are available at the door or from the House of Blues Web site.
The proceeds benefit the American Red Cross, Habitat for Humanity, the Jazz Foundation of America and the New Orleans Musicians Clinic.
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Rents include taxes and other operating expenses. Source: Studley Inc.