Chicago, December 18, 2000 - Jones Lang
LaSalle Hotels arranged the sale of Chicago's 424-room Westin River North to
THR Chicago LLC on behalf of Lend Lease Real Estate Investment's Value
Enhancement Fund (VEF) III --- an opportunistic investment vehicle. The
Westin River North, located in the heart of downtown Chicago, is a luxury
hotel that has earned Condé Nast's Top 50 Hotels in the World distinction
in previous years.
The sale represents a significant
transaction for Lend Lease, which purchased the hotel in December 1998.
During Lend Lease's ownership, the property realized significant improvement
in operations which translated into strong pricing for this asset, said
Thomas Fisher, Senior Vice President of Jones Lang LaSalle Hotels, who
spearheaded the deal. The international competition for this fee-simple,
unencumbered asset was intense, which resulted in one of the highest
price-per-key transactions of an existing hotel in the Chicago marketplace.
Constructed in 1987, the Westin River North
stands 20 stories above the Chicago River with full views of the downtown
Chicago skyline. It lies within the River North sub-market - the fastest
growing upscale retail, restaurant and entertainment district in Chicago.
According to Arthur Buser, Executive Vice
President and Head of the West Coast region of Jones Lang LaSalle Hotels,
the property attracted a wide range of domestic and international investors
as well as brands and operators seeking an established property in a strong
market. With occupancy exceeding 80 percent, the Westin River North -- and
the Chicago hotel market in general -- are poised for substantial rate
growth. Additionally, Westin River North's recently refurbished banquet and
meeting facilities will generate incremental operational revenues for the
hotel, added Buser.
Lend Lease's Value Enhancement Fund III is
the third in a series of closed-end, enhanced-return real estate investment
funds designed to take advantage of inefficiencies at varying stages in the
real estate cycle. Since the inception of VEF I in 1993, the series of funds
has found value in almost $2 billion in commercial real estate throughout
the United States. Lend Lease Real Estate Investments is one of the largest
real estate investment managers in the world and a leading U.S. real estate
advisor to pension funds. The company has $41 billion in real estate and
commercial mortgages under management for more than 500 institutional and
private clients in the United States.
Jones Lang LaSalle Hotels, the leading hotel
investment banking services group in the world, provides clients with
value-added investment opportunities and advice. Its recent two-year
success story includes the sale of 17,027 hotel rooms to the value of $2.2
billion in 75 cities and advisory expertise for 200,036 rooms to the value
of $29.8 billion across 278 cities. Jones Lang LaSalle Hotels' services
include transactions, mergers and acquisitions, financial advice and capital
raising, valuation and appraisal, asset management, strategic planning,
operator assessment and selection and industry research. Jones Lang LaSalle
(NYSE: JLL) is the world's leading real estate services and investment
management firm, operating across more than 100 key markets on five
continents.
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