A distressed Holiday Inn Express was purchased by a Florida real estate investor in River North for 55% less than its value more than a decade ago.

Crain’s reported that a venture led by Delray Beach-based investor Peter Patel paid $16.4 million last week for the Holiday Inn Express Chicago Magnificent Mile at 640 N. Wabash Avenue. The 174-room property was bought through an auction from LNR Partners, a special servicer representing bondholders in a loan that foreclosed on the hotel in 2022.

The sale price was well below the nearly $21 million balance of that mortgage, which the hotel’s previous owners took out to refinance the property in 2013. The hotel’s previous owners, a joint venture of Chicago-based Oxford Hotels & Resorts and Gettys Group, closed the Holiday Inn at the onset of the pandemic. In December 2020, they faced foreclosure lawsuits alleging failure to make their loan payments. The property, once known as Hotel Cass, reopened in 2023.

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