CDC approves TIF loan for 111 W. Monroe

The Community Development Commission has approved a $50 million TIF loan for the hotel component of the mixed-use adaptive reuse of the Harris Trust & Savings Bank at 111 W. Monroe. Planned by Prime/Capri Interest, LLC, made up of The Prime Group and Capri Investment Group, the building is located at the southwest corner of the intersection of Clark and Monroe streets. The building consists of a traditional Classical Revival skyscraper built in 1911 and an East Tower modernist addition from 1960.  

Designed by Stantec, the rehab will clean, repair, and restore the building’s facade and a large light well will be carved into the back of the building to provide light and air down to interior facing spaces. Modernized building systems and sustainability upgrades will also be implemented. 

The hotel component will contain approximately 308 oversized rooms and suites and will feature approximately 20,000 sf of ballroom and meeting space, 2 fine dining restaurants and bar, a fitness center, and the reopening of the historic “Monroe Club” on the penthouse level of the property.

The ground floor of the building will feature reception, concierge, lobby lounge, and fine dining areas for the hotel. The existing office lobby in the center building will be preserved, restoring its historic columns and decorative ceiling while modifying areas that require adaptation for new hotel uses, such as the adjustment of escalator positioning. 

Level 2 will be transformed into hotel meeting and event spaces, with renovations to the existing kitchen and private dining rooms to accommodate guest services and events. Levels 3 through 10 will be built out for hotel rooms, amenities, and core areas. Pre-function and ballroom space with double-height ceilings will also be created in the center building on Level 3. 

Levels 12 through 22 will be developed into 345 residential units, with 104 affordable units available to households earning an average of 60% of the area median income. 

Levels 23 and 24 will be renovated to reopen the historic “Monroe Club” for residents and hotel guests, featuring distinct lifestyle amenities for the residential units and hotel including sundecks and pools as well as a hotel guest fitness center. 

The hotel component of the building’s conversion is expected to cost $166.5 million. Funding sources include $48.1 million in equity, $50 million in C-PACE funding, $18.4 million in Historic Tax Credits, and $50 million in TIF funding. The residential component of the project has its own budget and funding stack. 

Uniquely, the TIF funding for this project is not an outright grant, but a loan. The loan would function like a traditional senior construction mortgage and allow the developers to draw funds quarterly from the LaSalle Central TIF District. The developers would pay interest only for the first five years after the project’s completion while the hotel ramps up operations, then move to a 15-year principal and interest repayment schedule. 

With CDC approval secured, the proposed TIF funding will need final approval from the City Council before the development can close on its financing. While an interior demolition permit has been issued to clear the way on the interiors for new construction, it is unclear what the timeline for the project buildout is pending the finalization of financing. McHugh Construction and BOWA Construction will serve as the general contractors for the project.