Sale of loan tied to site of Allgauer's restaurant could be a big deal on a distressed hotel
A distressed loan tied to a Hilton hotel in Northbrook has gone up for sale, setting up what could be a chance for a buyer to seize control of the property.
Atlanta-based lender Ardent has hired brokerage Newmark to market $34 million worth of defaulted mortgages backed by the 249-room Hilton Chicago Northbrook, according to sources familiar with the offering and industry newsletter Real Estate Alert. The hotel at 2855 N. Milwaukee Ave. in the North suburb has been owned for nearly a half-century by a venture of the Allgauer family, a staple in the Northbrook business community.
Ardent is testing how investors feel about the recovery of full-service hotels in the suburbs coming out of the COVID-19 pandemic, which initially crushed demand and has slashed hotel property values, making it difficult for many owners to refinance their mortgages. The nonperforming debt on the Hilton Chicago Northbrook is being framed as an opportunity for a buyer to take over the hotel from the venture led by Frank Allgauer, though a buyer could also negotiate a new loan agreement with the ownership, according to Real Estate Alert.