Landmark Drake Hotel in Chicago is up for sale, offering unparalleled mixed-use redevelopment opportunity
JLL announced Aug. 11 that it has been retained to market for sale the iconic Drake Hotel in Chicago, Illinois, which offers a once-in-a-generation opportunity to redevelop one of Chicago’s most recognizable and prestigious landmarks. This is the first time in over 100 years that the controlling fee simple interest in the property has been offered for sale.
The property is owned by four separate entities subject to a tenant in common (TIC) ownership agreement. JLL’s Hotels & Hospitality and Capital Markets groups are representing the two majority TIC members which, combined, own a 90% fee-simple interest in the Hotel. The remaining 10% interest is being concurrently marketed by another advisor.
The Drake Hotel is being offered unencumbered of brand and management, offering maximum flexibility to reposition one of Chicago’s most sought-after sites into its highest and best use. The historic hotel, which opened in 1920, features unobstructed views of Lake Michigan and is located at the intersection of two of the city’s most prestigious shopping and entertainment districts, North Michigan Avenue and Oak Street. The 535-room hotel boasts nearly 220 feet of linear retail frontage along North Michigan Avenue, 36,900 square feet of flexible meeting space and various food and beverage options, including Coq D’Or, Café on Oak, Palm Court and a coffee bar. The renovation and redevelopment of this historic asset would restore the hotel to its former glory, allowing it to, again, compete with the city’s most luxurious hotels while creating or enhancing ancillary uses like the retail space and the potential creation of residential units.
The JLL Hotels & Hospitality and Capital Markets team representing the seller is being led by Senior Managing Directors Adam McGaughy, Jeff Bramson and Danny Kaufman; Managing Directors John Nugent, Mark Stern, Amy Sands and Tom Kirschbraun; and Vice President Mark Jindra.
JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totaling $83 billion worldwide. The group’s 350-strong global team in over 20 countries also closed more than 7,350 advisory, valuation and asset management assignments. Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.