JW Marriott Chicago Hits the Market Without Asking Price After Being Valued at $228M

Rialto Capital has put the JW Marriott Chicago, a 610-room hotel, on the market. The property, located at 151 West Adams St., is being marketed by JLL without a specified asking price.

Property Valuation and Debt

In March, the hotel was appraised at $228.1 million, according to Trepp Inc. data. The property carries $79.3 million in securitized debt across three deals. These include $40 million in CSAIL Commercial Mortgage Trust, 2017-CX9, $28.5 million in UBS Commercial Mortgage Trust, 2017-C3, and $10.8 million in UBSCM, 2017-C4. The debt, with a 4.04 percent coupon, matures this month.

Foreclosure and Redevelopment History

Rialto Capital foreclosed on the JW Marriott in 2022 after Estein USA defaulted on the mortgage. The hotel was redeveloped in 2008 by a venture involving Estein and Michael Reschke at a cost of $312 million.

Financial Performance

The JW Marriott's net operating income (NOI) was $12.3 million last year, a significant decline from the $22.3 million NOI in 2018. At that time, the hotel was valued at $370.4 million.