Murphy Development Group Closes Record-Breaking Hyatt Centric Sale
Chicago, IL | August 31, 2017
CHICAGO – August 31, 2017 – Murphy Development Group (MDG) announced that the sale of its 257-room Hyatt Centric the Loop Chicago Hotel to Germany-based Deka Immobilien has closed for $110 million as a long-term sale and leaseback agreement. At $428,000 per key, the transaction represents the highest closing price to date for the Chicago Loop hotel market. Seller and future tenant, Integrated Clark Monroe, an affiliate of MDG, will maintain a long-term franchise agreement with Hyatt Hotels Corporation.
The four-star Hyatt Centric the Loop Chicago was developed by MDG and was completed in 2015 as the inaugural Hyatt Centric property, which focuses on a full-service lifestyle brand designed for business and leisure travelers. Along with its numerous amenities, the project also includes French restaurant Cochon Volant and AIRE, one of Chicago’s most acclaimed rooftop bar experiences.
“This closing is an outstanding result for our investors, which recognizes the uncompromised quality of the development, the global reach of the Hyatt Centric brand, and the exceptional urban location of the hotel,” said John T. Murphy, chairman & CEO, MDG, and vice-chairman, MB Real Estate, “We are excited about our future relationship with Deka Immobilien, a world class international real estate investor, represented by a professional and proficient team.”
In addition to the Hyatt Centric sale, MDG has completed a number of notable projects in the past year alone, such as the openings of Cambria Hotels & Suites in Chicago’s Loop last May and the Holiday Inn Cleveland Clinic in May 2016. MDG also recently partnered with CIM Group and commenced construction of a 500-unit luxury apartment tower at 1326 South Michigan, which will be delivered in early 2019.
The MDG pipeline currently includes several projects both in Chicago and throughout the country, with values in excess of $2 billion. Locally, upcoming projects include the redevelopment of the Cook County Hospital campus and the development of two office towers, located at 301/321 S. Wacker, comprising 1.2 million square feet, with a projected value of $1.1 billion.
Murphy stated, “We’re enthusiastic about our upcoming projects and recognize the strength of the Chicago marketplace for the product which we are developing.”
About Murphy Development Group
Murphy Development Group, LLC, focuses on generating development opportunities in the multifamily, hospitality and office sectors across the country. Through sound investment strategies and extensive due diligence, the dynamic development team identifies, evaluates and executes the projects by combining sound financial modelling, economic analysis and entrepreneurial creativity. The Murphy Development Group, LLC, with additional support by the MB Real Estate team, have led numerous developments owned by affiliates of MDG including: Lincoln Park 2550, 1326 S. Michigan apartment tower, Hyatt Centric Chicago “The Loop,” the Chicago Motor Club redevelopment into a Hampton Inn, and the Oriental Theatre redevelopment into a Cambria Suites hotel.