Junius Real Estate Partners Lists 21c Museum Hotel with Art Gallery in River North for Sale

A unique opportunity has emerged in the heart of River North, as Junius Real Estate Partners, a real estate investment boutique within JPMorgan Chase, embarks on a quest to find a worthy buyer for the renowned 21c Museum Hotel. Situated at 55 E. Ontario St., this exceptional 16-story establishment comprises 297 rooms and boasts a captivating art gallery. With the hospitality sector gradually bouncing back from the aftermath of the pandemic, the time is ripe to explore this magnificent property.

The 21c Museum Hotel, characterized by its distinct blend of contemporary elegance and artistic flair, embraces the spirit of cultural immersion. A treasure trove of artistic wonders, it offers guests an unparalleled experience where breathtaking accommodation and captivating exhibitions harmonize seamlessly. As the hotel aims to find a new owner, real estate brokerage firm Jones Lang LaSalle has been appointed to spearhead the search.

Despite the challenges brought forth by the global crisis, Chicago's hospitality industry has shown remarkable resilience. Data from CoStar Group reveals a promising upward trend, with the average revenue per available room in the city's central business district reaching $148.29 during the 12-month period ending in November. This figure incrementally surpasses the pre-pandemic average from 2019, taking inflation into account.

However, the journey to recovery remains a gradual one. Stricter lending regulations have led to a decline in hotel sales, casting a temporary freeze on commercial property transactions. In the past 15 months, a mere four hotels in Chicago's Loop area have changed hands, according to CoStar data. Even with the notable sale of the St. Regis, which was pre-negotiated during its construction phase, the total sales volume in the central business district amounted to less than $20 million during this period. The situation echoes a national trend, with a 47% year-over-year decrease in hotel sales across the country in 2023, as reported by research firm MSCI Real Assets.

A Prospect of Possibilities

The renowned 21c Museum Hotel is now up for grabs, presenting a unique opportunity for potential buyers to shape its future. With no brand affiliations to tie it down, the new owner has the freedom to reimagine this property and attract other hotel brands looking for a prime spot near downtown. As the largest city hosting a 21c Museum Hotel, Chicago proudly stands as one of the select few cities, alongside St. Louis and Cincinnati, that proudly showcases these curated art havens according to the chain's official website.

The listing price remains undisclosed; however, we do know that in 2018, the property, then known as the James Hotel, was acquired by Junius for a staggering $83.1 million. The building itself has an intriguing history, having been constructed back in 1927 and seeing substantial renovations in both 1985 and 2006. In 2018, the management torch was passed to the Louisville-based boutique hotel chain, 21c Museum Hotels, which embarked on an extensive $33.5 million renovation and repositioning project. It finally reopened its doors in February 2020 as the prestigious 21c Museum Hotel, breathing new life into the iconic structure.

An Alluring Transformation Begins at 21c Museum Hotel

JLL is seizing the opportunity to transform the lobby-level gallery space and the second-floor meeting and event spaces of the illustrious 21c Museum Hotel. This innovative move aims to not only enhance the overall guest experience but also amplify group occupancy rates and the average daily rate. By upgrading these areas, the hotel will attract more visitors looking for a one-of-a-kind venue, while also increasing the rates paid for booked accommodations within a given timeframe.

The team at JLL Chicago, consisting of Adam McGaughy, John Nugent, Mark Jindra, and Nick Sullivan, has taken up the exciting task of marketing this exceptional property on behalf of Junius, the proud owner.