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Development Update: McCormick Place Hotels

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Prairie Blocks may be deceased, but a pair of hotels are in the works for the same site near McCormick Place in the South Loop. The owners of the 4.9-acre property, developers Pam Gleichman and Karl Norberg, recently filed for bankruptcy protection and are selling the land in order to avoid foreclosure and satisfy debts owed to their creditors. As part of the transaction, the site was divvied up into three parcels, each sold separately to various buyers. The largest was purchased for $150M by Ground Lease Capital Partners LLC, which has agreed to lease the property back to Gleichman and Norberg, who are planning to build a 1,067-room, 110,000-square foot hotel known as the Marriott Marquis. Local developer Global Builders Inc. has agreed to buy the second parcel for $30M with aspirations for a 575-room Hilton or Marriott hotel. As for funding, the venture led by Gleichman and Norberg is seeking $90M in TIF funds. No word on whether their creditors will consent to the plan. [Crain's by subscription, previously]