April 19, 2016
Union Investment Real Estate, an investment manager based in Hamburg, Germany, has acquired the 452-room LondonHouse on North Michigan Avenue in Chicago. The investor paid a record $315 million to sellers Oxford Capital Group and Angelo Gordon. At $697,000 per room, the transaction represents the highest per-room price paid for a Chicago hotel.
As part of the transaction, Oxford has agreed to a 25-year contract to lease back the property and manage the hotel, which will open in May.
The deal is Union Investment’s second with Chicago-based Oxford. In December, the German buyer paid Oxford $180 million for Godfrey Hotel Boston. Oxford’s partner on that deal was Walton Street Capital, also based in Chicago.