Walton Street Capital, a Chicago-based private equity real estate investment firm, is putting its Hotel Lincoln, also in Chicago, up for sale just two years after the property was acquired. The group now believes the time is right to sell the asset, with barriers of entry to the city hard and demand for Chicao assets at a high.
Walton Street bought its stake in the boutique 184-room hotel in September 2013 in a transaction that valued the property at $45 million, reports Crain's Chicago.
“We love it, but we executed our business plan and cash flow has gone up significantly,” said Walton Street Principal Stephen Sotoloff.
As Crain's futher reports, citing Sotoloff, "Walton Street, headed by billionaire investor Neil Bluhm, and its partner, Chicago-based AJ Capital Partners, boosted the hotel's revenue by adding a retractable roof to its rooftop bar, the J. Parker, allowing it to be open year-round. More broadly, Chicago hotel values have increased the past two years as occupancies and room rates have blown past pre-recession levels."
The Hotel Lincoln is a former Days Inn that opened in 2012. Crain's writes, citing sources, that the hotel could fetch more than $70 million. The Walton Street JV already pulled some money out of the hotel in February, when it boosted the property's loan from $32 million to $45.5 million.