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Will a new developer help get the West Loop’s Nobu Hotel back on track?

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The half-completed project is changing hands

Modif Architecture

The developer behind Chicago’s slow-moving Nobu Hotel is reportedly selling his stake in the delayed and partially-completed Fulton Market project. According to the Chicago Tribune, Mark Hunt of M Development has struck a deal to sell the 11-story combination boutique hotel and restaurant to Mexico’s RCD Resorts for $20 million.

The highly-anticipated West Loop project faced a number of delays and false starts after its June 2016 groundbreaking ceremony attended by Nobu investor Robert DeNiro. The development didn’t get zoning approval from the City of Chicago until the fall and wasn’t awarded a building permit until December of 2016. Additional delays pushed the start of foundation work to May of this year.

Since then, the 11-story development managed to rise a handful of levels above ground but abruptly halted construction last month as M Development sought a $52 million loan to finish the hotel. A source told Crain’s that work has stopped more than once due to issues of non payment.

RCD Resorts also is working on a Nobu Hotel in Cabo San Lucas, Mexico. It’s unclear if the change in ownership will be enough to get the stalled Chicago development at the northeast corner of Randolph and Peoria back on schedule. The location still appears on Nobu’s website with a 2018 opening date.

Designed by Modif Architecture and featuring interiors by local restaurant specialist Studio K, Nobu Chicago is expected to contain 119 guest rooms, a rooftop terrace, and a 10,000-square-foot Nobu restaurant from namesake celebrity chef Nobu Matsuhisa.

Rendering by Modif/Studio K