Shuttered Prospect Heights hotel suggested for senior housing as prior taxes pursued
The new owner of the abruptly closed Crowne Plaza Chicago-Northbrook hotel in Prospect Heights has made an informal proposal to the city to convert the 318-room building into a senior-living facility, city officials said.
City Administrator Joe Wade said investor Deepak Paul Khanna had a conversation with Mayor Patrick Ludvigsen, who initially expressed disfavor with the idea, which would require a rezoning of the 5.8-acre property at 2875 Milwaukee Ave.
No formal proposal has been submitted for review, Wade added.
Meanwhile, Prospect Heights has begun legal proceedings to collect $81,629 in unpaid hotel taxes from the previous owner, Chicago 2875LLC, that sold the property at auction in February. These were generated during the final six months of operation, Wade said.
Wade said the loss of future taxes concerns city officials.
The foreclosure auction resulted in the new owner acquiring the hotel property for $6.5 million while its previous sale in 2021 had been for nearly $13 million, according to records.
According to LoopNet, the hotel was built in 1977, renovated in 2020 and has a total assessment of $4.77 million. The estimated property value is just over $19 million, according to Cook County records.
The hotel and the Hilton Chicago Northbrook directly across the street were long situated immediately west of the sprawling Allstate corporate campus in Northbrook, which was razed to make way for development of industrial properties.
Khanna is named as the controller of Niles First RE LLC, which sold Plum Creek Supportive Living at 2801 Algonquin Road in Rolling Meadows to Lake Zurich-based developer Monoceros Corp. before the 28-year-old facility embarked on an expansion plan last fall.
And last June, on behalf of Aim High Hospitality, Khanna signed a redevelopment agreement with Elk Grove Village for construction of a Home2 Suites by Hilton hotel on the former site of a La Quinta Inn motel on the northeast corner of Oakton Street and Busse Road.
Neither Khanna nor Ludvigsen could be reached for comment Tuesday.