HFF Announces $38.7m Financing for Chicago Marriott Schaumburg

USA, Chicago, Illinois. February 28, 2018

Holliday Fenoglio Fowler, L.P. (HFF) announces $38.7 million in financing for the acquisition and renovation of Chicago Marriott Schaumburg, a 398-room, full-service hotel in the Chicago suburb of Schaumburg.

The HFF team worked on behalf of the borrower, an affiliate of Chicago-based Arbor Lodging Partners, to place the three-year, floating-rate loan with a one-year extension with Ladder Capital.  Arbor Lodging Partners will be completing significant upgrades to the property, including a full renovation of the lobby, meeting space, common areas and guest rooms, along with the addition of the new Marriott M Club lounge.  The property is managed by Arbor Lodging Management.

Located at 50 North Martingale Road, the 13-story Chicago Marriott Schaumburg comprises 183 double and 211 king guestrooms and four Presidential Suites.  The property is situated within the Woodfield Corporate Center complex, which contains more than three million square feet of Class A office space, and is located one mile from the Woodfield Mall, the largest shopping center in Illinois and one of the 10 largest shopping malls in the U.S. with more than 2.2 million square feet of restaurant and retail space.  Completed in 1983 and renovated in 2007, the hotel features a fitness center, full-service business center, indoor and outdoor pools, two restaurant venues and 21 meeting and event rooms totaling to 18,536 square feet of space.

The HFF debt placement team representing the borrower consisted of senior director Jeff Bucaro and associate Nicole Aguiar, along with managing director Tony Malk and directors Matt Enright and Bryan Rosenberg.

“The potential and upside of the Chicago Marriott Schaumburg was evident, and we couldn't be more pleased to make it Arbor's first property in the Chicagoland area,” said Vamsi Bonthala, CEO of Arbor Lodging Partners.  “We worked closely with the HFF team and thank them for their hard work that has initiated a new chapter for the hotel.”

“We are excited to be part of the project and we share Arbor's vision in creating a premier full-service hotel asset in the Schaumburg market,” Bucaro added.  “Arbor has a solid track record of renovating, repositioning and managing hotel assets, and we believe this property will be very successful.”

About Arbor Lodging Partners

Arbor Lodging is a Chicago-based national owner and operator of hotels.  The company was founded in 2005 with the goal of uniting the best practices of enterprising hotel operators and sophisticated institutional investors to effectively underwrite and execute investments in the lodging space.  Arbor Lodging Partners makes investments in hotels, acquires loans secured by hotels, and, through its affiliate Arbor Lodging Management, manages operations for its own hotels and those owned by third-parties.  The company has been entrusted by numerous partners and is an approved manager for Marriott, Hilton, and IHG. To learn more about Arbor Lodging, visit www.arborlodging.com.

About Ladder Capital

Ladder Capital (NYSE: LADR) is an internally-managed real estate investment trust and a leader in commercial real estate finance.  Ladder originates first mortgage loans secured by commercial real estate, makes investments in investment-grade securities secured by first mortgage loans on commercial real estate; and invests in net leased and other commercial real estate equity.  Founded in 2008, Ladder is run by a highly experienced management team with extensive expertise in all aspects of commercial real estate, including origination, credit, underwriting, structuring, capital markets and asset management.  Ladder is headquartered in New York City, with branches in Boca Raton, FL and Los Angeles, CA. For more information please visit www.laddercapital.com

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry.  HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing.  HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF).  For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

Media Contact:

Jeffrey Bucaro
HFF Senior Director
312-528-3678
jbucaro@hfflp.com

Kimberly Steele
HFF Digital Content/Public Relations Specialist
713-852-3420
ksteele@hfflp.com

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