May 18, 2018
Locally-based American Street Capital has arranged a $10.7-million loan for the 63-key Ivy Boutique Hotel on Chicago’s Magnificent Mile. ASC president Igor Zhizhin arranged the loan, placing it with a correspondent debt fund.
The loan’s sponsor required a fast close with a large cash-out to negotiate and consolidate debt associated with the property and other assets. Also required was an initial interest reserve to meet the borrower’s strategy of repositioning the asset with a new management company. ASC turned around a loan with a 12-month interest-only structure in less than three weeks.
Opened in 2012, the Ivy is an adaptive re-use of a mid-rise downtown office property at 233 E. Ontario St. It reportedly offers the largest average room size in the Chicago market.
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