CBRE Arranges Sale of Versey Hotel in Chicago

CBRE has arranged the sale of Hotel Versey, a 137-room hotel located at 644 West Diversey Parkway in Chicago, IL. Lincoln Park Hotel PropCo LLC sold the property to REIT 644 LLC in a transaction that closed May 2, 2024. A sale price was not disclosed.

CBRE’s Nate Sahn, James Foxx, Nicholas Endre, Marcello Campanini, and Adam Foret represented the seller, Lincoln Park Hotel PropCo LLC, in the transaction.

Constructed and opened in 1925, the Hotel Versey is located amidst a dense cluster of retail, restaurant, and residential developments and is within walking distance of many nearby attractions including the Lincoln Park Zoo, Lake Michigan beaches, and Wrigley Field. The four story, interior-corridor hotel is in excellent condition due to its recent renovation and continued on-going preventive maintenance program by the current operations team.

Unlike many other comparable cities, a bulk of Chicago’s hotels are concentrated in closer proximity to the CBD, creating a void and opportunity in the city’s neighborhoods. With many of these hotels being smaller independents, the Hotel Versey is well positioned to capture more than its fair share of corporate transient and leisure travelers as well as convention center attendees looking at alternative lodging options.

“The strong in-place operating performance of the Hotel Versey made this deal attractive for the buyer who already owns other hotel properties in the surrounding area,” said Sahn. “The asset was performing well leading up to the sale, tracking ahead of pre-pandemic performance. Investors looking to acquire assets in Chicago should look at this deal as an indicator that Chicago is a great market to invest capital given its favorable performance metrics, lack of new hotel supply, and strong economic fundamentals.