Crestline Investors (“Crestline”) is pleased to announce its $35 million preferred equity investment in a dual-branded Canopy by Hilton and Hilton Garden Inn located in the heart of Downtown Chicago’s Central Loop. The 350-key hotel is an institutional-quality asset with historical landmark status, which was developed in 2021 through an acquisition and repositioning of the Chicago/Northwestern Railway building.
Recognizing the enduring value and prime location of the property, Crestline Investors, alongside 1907 Capital, completed a significant equity recapitalization of the property. The transaction provided necessary capital to stabilize and enhance the property’s capital structure, enabling the flexibility it to operate within the competitive downtown Chicago market.
“This transaction showcases our ability to create solutions that unlock valuable assets in today’s market,” said James Delaune, Managing Director and Head of Real Estate at Crestline. “We are proud to have recapitalized this historic asset and believe the hotel is well-positioned to capitalize on its prime location and unique foothold in Chicago’s hospitality market.”
“This is a storied piece of real estate in a durable submarket of America’s heartland,” said Adam Pieczonka, Partner and Head of Research at 1907 Capital, “The 1907 team looks forward to working with management, employees and vendors to ensure it provides the highest value hospitality experience to the residents and visitors of Chicago.”
About Crestline Investors
Crestline Investors, Inc is an alternative investment management firm founded in 1997 and based in Fort Worth, Texas, with affiliate offices in London, New York, Toronto, and Tokyo. The firm has approximately $18 billion in assets under management (as of March 31, 2024), and is specialized in private credit strategies, offering a diverse range of investment solutions across its direct lending, opportunistic, and portfolio finance platforms. For more information, visit www.crestlineinvestors.com.
About 1907 Capital
1907 Management, LP ("1907 Capital") is an investment manager based in Miami, Florida and specializes in debt and structured equity lodging transactions across North America. The firm offers differentiated capital solutions and focuses on special situations whereby 1907 Capital recapitalizes assets, portfolios and platforms to drive asset performance while mitigating downside via structuring. 1907 Capital’s investment partners are complemented by an array of operating partners from corporate-level finance to property-level management For more information, visit https://1907.capital.
This financial promotion is issued by Crestline Management, LP and Crestline Europe, LLP (together "Crestline"). Crestline Europe, LLP is authorized and regulated by the Financial Conduct Authority (FCA). The material is not intended to be a formal research report and nothing in this presentation should be interpreted to state or imply that past results are an indication of future performance. Any opinions expressed herein are our current opinions only. There can be no assurance or guarantee that Crestline's investment strategy will achieve its stated goal. All information provided in this presentation is for informational purposes only Crestline accepts no liability for loss arising from the use of this material. In the United Kingdom, this communication is being made only to, or directed only at, persons who are: (i) investment professionals within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“FP Order”); (ii) high net worth companies and certain other entities falling within Article 49 of the FP Order; or (iii) any other persons to whom such communication may lawfully be made. It must not be acted, or relied, upon by any other persons.
