LOS ANGELES, Aug. 15, 2013 /PRNewswire/ -- Ethika Investments, LLC, a U.S.-based real estate private equity firm, has announced a capital allocation for the acquisition of the Renaissance O'Hare Hotel in Chicago, Illinois. This property marks the sixth investment from Ethika's Diversified Opportunity Real Estate Fund. The Hotel features 15 floors, 362 guestrooms and 21,500 square feet of meeting space and amenities, including a fitness center, business center, pool, concierge and an airport shuttle. Located in a highly visible location near the airport and adjacent to the Kennedy Expressway/Interstate 90, the Renaissance O'Hare is positioned amid approximately 7 million square feet of Class A commercial office space, and close to the corporate office parks in the Village of Rosemont.
Ethika's affiliate, Laurus Corporation, a real estate investment and development company specializing in hotel and resorts, office buildings and mixed-use properties, recently completed the acquisition of the hotel.
"The O'Hare submarket has a dynamic and diverse economic base which has exhibited resilience in current market conditions. The market RevPAR has improved by approximately 21% over the past 24 months and Class A office vacancy has decreased for the past seven quarters. Additionally, we are planning a $6.5 million renovation program and bringing in Concord Hospitality Enterprises as the new management company to enhance the overall guest experience and further drive future performance," said BJ Turner, Vice President Capital Markets for Ethika Investments.
"This investment displays an opportunity to acquire a high-profile asset located in one of the strongest submarkets of Chicago at a significant discount to the replacement cost," said Andres Szita, Chairman & Co-Founder of Ethika Investments. "The Renaissance O'Hare acquisition further underscores Ethika's ability to identify and invest in assets which display attractive returns and robust demand drivers."
The third most populous metro area in the United States with an estimated 9.8 million residents, Chicago has seen steady, significant job growth. A planned $7.3 billion redevelopment of the city's infrastructure will include the revitalization of McCormick Place and Navy Pier, and new runways at O'Hare International Airport. According to a recent study, Chicago is on track to become one of the 10 most economically competitive cities in the world and is poised to become a more global city.
The hotel is located at 8500 W. Bryn Mawr Avenue, Chicago, IL 60631.
Ethika Investments is a real estate private equity firm formed to provide investors access to a unique platform by tactically investing in opportunistic real estate assets primarily in the United States. It is affiliated with Laurus Corporation, a real estate investment and development company that specializes in hotel & resorts, office buildings, multifamily and mixed-use properties.
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SOURCE Ethika Investments