2. EXCLUSIVE ADVISORS
Danny Kaufman
Senior Managing Director
312.420.7788
danny.kaufman@jll.com
Jeffrey Bucaro
Executive Vice President
312.925.0404
jeff.bucaro@jll.com
Mark DesLauriers
Analyst
212.812.6475
mark.deslauriers@jll.com
This Offering was prepared by Jones Lang LaSalle’s Hotels & Hospitality Group (“JLL”) based on information supplied by Owner. It contains select information about the Property and the real estate market but does not contain all the information necessary to
evaluate the acquisition of the Property. The financial projections contained herein (or in any other Evaluation Material, including any computer diskettes or electronic files) are for general reference only. They are based on assumptions relating to the overall
economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections.
While the information contained in this Offering and any other Evaluation Material is believed to be reliable, neither JLL nor Owner guarantees, represents or warrants its accuracy or completeness. Because of the foregoing and since the Property is being
offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate the prospective investor’s investigation, must make its independent investigations, projections and con-
clusions regarding the acquisition of the Property without reliance on this Offering or any other Evaluation Material. Although additional Evaluation Material, which may include engineering, environmental or other reports, may be provided to qualified parties
as the marketing period proceeds, this Evaluation Material is also being provided without guarantee, representation, or warranty, and prospective investors should seek advice from their own attorneys, accountants, engineer’s environmental experts, and any
other party or parties deemed appropriate by prospective investors in evaluating the Property.
Owner expressly reserves the right, in its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time with or without written notice. Owner shall have no legal commitment or obligations to any
prospective investor unless and until a purchase and sale agreement has been fully executed, delivered and approved by Owner and any conditions to Owner’s obligations thereunder have been satisfied or waived.
Owner has retained JLL as its broker and will be responsible for any commission due to JLL in connection with a transaction of the Property pursuant to a separate agreement. Neither JLL or any other person or party is authorized to make any representation
or agreement on behalf of Owner. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with a sale of the Property if such claims arise from acts of such prospective investor or its broker.
This Offering is the property of Owner and JLL and may be used only by parties approved by Owner or JLL. No portion of this Offering may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement.
5. Executive Summary
Jones Lang LaSalle Americas, Inc. (“JLL”), as exclusive advisor for the Joint Venture between Freidman Properties and
White Lodging (collectively the “Sponsor”) seeks refinancing proposals of $94,801,000 ($165,400/key, 8.4% DY on Mar 2023
TTM, 11.0% DY on Mar 2023 A/F) to refinance the maturing debt and cover capital expenditure costs for the renovation of
the 270-key Residence Inn River North (the “Residence Inn”) and the 253-key SpringHill Suites River North (the “SpringHill
Suites”), collectively a 523-key dual-brand hotel (the “Hotel” or “Property”).
Located in the epicenter of River North, Chicago’s preeminent dining and entertainment district, the dual-branded hotel
is proximate to the city’s top demand drivers including the Michigan Ave shopping corridor, the Chicago River, Chicago’s
Theatre District, and Navy Pier and is within a one-mile radius of over 107 million square feet of Class A office stock. The
Property is scheduled to commence a $10.9 million ($20,900 per key) renovation in Q4 2024 encompassing guestrooms
and public/meeting space that will enable the Hotel to further penetrate its competitive set and drive revenues. This
request presents a rare opportunity to finance an institutional quality, premium dual- branded hotel backed by superior
sponsorship in an exceptional downtown Chicago location.
SUMMARY OF FACILITIES
Address 410 N Dearborn St, Chicago, IL 60654
Guestrooms Total: 523 keys
Residence Inn: 270 keys
SpringHill Suites: 253 keys
Year Opened Residence Inn: 2008
SpringHill Suites: 2008
Tenure Residence Inn: Fee Simple
SpringHill Suites: Fee Simple
Union Status Non-Union*
Brand / Management Marriott International / White Lodging
Franchise Marriott International
Food & Beverage ◊ Holloway's Bar
◊ Einstein Bros. Bagels (leased)
◊ Hub 51 (leased)
Meeting Space +/- 1,360 SF
Other Amenities ◊ Complementary Breakfast
◊ Fitness Center
◊ Complementary WiFi
◊ Convenience Store
◊ Valet Parking & Self-Parking
*The Hotel is party to a CBA covering only Operating Engineers with Local 399
6 | Executive Summary
6. Financing Highlights
Institutional Dual-Brand Hotel with Upcoming Renovation
The Property is an institutional quality asset featuring 523 spacious guestrooms, +/- 1,400 square feet of meeting
space, three food and beverage outlets, and fully equipped fitness center. The Property is slated to undergo a
$10.9 million ($20,900 per key) renovation commencing in December 2024 and concluding in April 2025 that
will enable management to push ADR and drive top-line performance. The full-scale renovation will encompass
both guestrooms and public/event space, elevating the physical product to meet or exceed the quality of the
competitive set. The Hotel has historically over penetrated the market, recording RevPAR indices above 100 percent
since 2016, and will further enhance its competitive positioning following the renovation.
Highly Efficient Operating Model
The Residence Inn & SpringHill Suites effectively operate as one Property, sharing nearly all employees, services,
and amenities. These synergies result in a highly efficient operating model that delivers consistently strong results
reflected in the Property’s in-place and historical cash flows. In 2022, the Hotel generated $7.9 million in NOI,
approximately 88% of 2019 levels, and is currently on track to eclipse 2019 performance in 2023.
Executive Summary | 9
7. World-Class Brand Affiliation
The Property benefits from its strategic affiliation with
Marriott International – the preeminent lodging brand in
the world with more than 30 brands and 8,000 properties
across 139 countries. Marriott has an unquestioned
advantage in the lodging industry due to the strength of its
reservation system and loyalty program, Marriott Bonvoy,
which boasts over 160 million members across the globe.
8,000+
properties across
139 countries
160M
Marriott Bonvoy
members worldwide
LUXURY
PREMIUM
SELECT
LONGER STAYS
Executive Summary | 11
8. Accelerating Recovery of Chicago’s Office Market
Chicago’s Central Business District continues to illustrate positive signs of recovery after quarterly net
absorption levels reached its highest level since the first quarter of 2020. Fueled by newly developed office
space in the West Loop and Fulton Market, 2022 net absorption achieved positive levels for the first time since
the onset of the pandemic, closing the fourth quarter with 132,800 square feet of positive net absorption
and outperforming gateway markets such as New York City, Los Angeles, Dallas, and San Francisco. Market
fundamentals are simultaneously improving evidenced by 7.4% year-over-year growth in Class A rents due
in part to historically high prices within new trophy office towers and new development in the Fulton Market.
Significant additions to Class A office inventory to meet rising demand are expanding the City’s office market
with +/- 4.1 million square feet of Class A office space delivered between 2021 and 2022 and +/- 4.5 million
square feet of Class A office space anticipated to be delivered between 2023 and 2026. These 8.6 million
square feet represent roughly 9.9% of the current Class A inventory in the CBD, demonstrating strong investor
confidence in the Chicago office market as its recovery continues.
+/-4.1 million SF
of Class A Office Inventory Delivered Between 2021 -2022
+/-2.3 million SF
of Class A Office Inventory Delivered Between 2023 - 2026
+/-9.9%
of Current Total CBD Class A Inventory Delivered or Anticipated
from 2021 to 2023
Executive Summary | 13
9. Prime Downtown Chicago Location
Millennium Park
Riverwalk
Michigan Avenue Shopping
Corridor
The Loop
AMA Plaza
Google Relocation/
Thompson Center
Theater District
Merchandise Mart
Salesforce Tower
River North
Executive Summary | 15
10. The Residence Inn & SpringHill Suites River North is prominently located in River North, Chicago’s vibrant dining, arts, and entertainment neighborhood. Originally
a manufacturing and warehouse district, River North began attracting artists in the early 1970’s drawn to the spacious lofts and affordable rents the gritty industrial
area offered at the time. In the following decades, River North transformed into a burgeoning arts district with an abundance of galleries, public art installations,
and performance spaces. The artistic revitalization spurred the development of world-class restaurants, bars, clubs, and music venues, quickly establishing the
neighborhood as Chicago’s premier cultural and entertainment destination. In recent years, River North has experienced significant development with new luxury
residential towers, hotels, and office buildings springing up alongside the historic brick and timber loft buildings that define the district’s character.
River North today contains the highest concentration of restaurant and entertainment venues in Chicago, featuring world-famous celebrity chefs/owners including
Rick Bayless’s Michelin-rated Topolobampo and Giuliana and Bill Rancic’s RPM Italian and RPM Steak. Other destination restaurants include Bavette’s Bar & Boeuf,
Ema, Siena Tavern, and Sunda all within walking distance of the Property. In addition to restaurants, River North houses many of Chicago’s renowned clubs and
bars as one of the liveliest after-hour areas in the city. The neighborhood continues to expand in wake of the pandemic with six new restaurants that opened in Q1
of 2023. Later this year, New York City based The Group is introducing previously successful concepts Olio e Piu, La Grande Boucherie, and Omakase Room in River
North, testament to the strength of demand in the neighborhood.
River North
Submarket
30 | Market Dynamics
11. #1 Best Big City in the U.S.
For the sixth year in a row
Conde Nast Traveler 2017-2022 Readers
Choice Awards
Top Metropolitan Area for
Corporate Investment
For the seventh consecutive year
- Site Selection, 2019
Largest Convention
Center in the U.S.
McCormick Place
- Choose Chicago, 2021
#2 Busiest Airport
in the U.S. in 2019
O’Hare International Airport
- TripSavvy, 2019
Favorite Airport in
North America
For the second consecutive year
O’Hare International Airport
- Global Traveler Magazine, 2021
2nd
in the U.S. Annual
Net Office Absorption
- JLL Research, 2020
#1 in the U.S. for Foreign
Direct Investments
- IBM Global Location Trends Report, 2020
35 Fortune 500 Companies
Headquartered in the
Chicago MSA
- Fortune, 2022
3rd
Largest Metropolitan
Area in the United States
- Statista, 2019
25 Michelin-Starred
Restaurants
#1 in the Midwest Best
Startup Cities
- M25, 2021
#4 States with Most
Fortune 500 Companies
- Statista, 2021
3rd Top Moving Destina-
tion in the Nation
- CVENT,2019
#1 Best Weekend Get-
aways in the Midwest
- U.S. News & World Report, 2021
#3 Business School
University of Chicago Booth
- U.S. News, 2022
7th Best Nightlife Cities in
the U.S.
- U.S. News & World Report, 2021
Market Dynamics | 31
12. Chicago By the Numbers
`
U N I T E D
Fortune 500 Companies
Overview
Education Location People
400+
Corporate
Headquarters
33
Fortune 500
companies
#2
Largest derivatives
exchange in the world
60.8M
Visitors in 2019 New
record for Chicago
6.98B
GMP
9.5M
People across the
Chicago MSA
1.8B+ R&D at Chicago's four
largest universities (2020)
#3 University of
Chicago Booth
93K College students enrolled in
nearby universities
#4 Northwestern
(Kellogg)
TOP U.S. MBA PROGRAMS
U.S. News World Report, 2021
#3 Largest city in
the U.S.
#1 Best city in the U.S.
Condo Nast, past six years
#1 Metro area for corporate
investments; 8 consecutive years
Condo Nast, past six years
2.7M People
(City of Chicago)
#1 U.S. Metro for foreign direct investment
projects for 6 consecutive years
4th Most popular city for getting on MBA
mba.com
32 | Market Dynamics
13. Chicago MSA Economic Indicators
Chicago benefits from a broad-based economy that is well-balanced across a variety of sectors, which
mitigates a sharp downturn that impacts a specific segment of the economy.
Trade, Transportation,
Utilities
Professional &
Business Services
Education & Health
Services
Government
Leisure &
Hospitality
Manufacturing
Financial
Activities
O
t
h
e
r
S
e
r
v
i
c
e
s
*
C
o
n
st
ru
ct
io
n
CHICAGO MSA ECONOMIC INDICATORS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Gross metro product ($bil) 467.1 468.1 470.9 481.4 487.0 457.4 487.1 503.2 501.4 510.5 523.0 537.3 550.8
Total employment (ths) 3,663.3 3,720.7 3,748.7 3,775.1 3,800.6 3,520.6 3,598.9 3,761.5 3,810.0 3,831.6 3,855.7 3,863.2 3,868.4
Unemployment rate (%) 6.0 5.9 4.9 4.1 3.8 9.7 6.5 4.5 4.3 4.3 4.2 4.5 4.6
Personal income growth (%) 5.4 0.9 3.3 6.0 3.4 5.3 7.3 1.9 4.1 4.4 4.1 4.3 4.0
Median household income ($ ths) 63.1 65.4 68.2 70.7 73.4 74.4 77.2 78.9 81.5 84.5 87.4 90.5 93.6
Single-family permits (#) 4,467 4,581 4,524 4,692 4,188 4,252 5,472 5,373 8,555 9,283 9,567 9,546 9,509
Multifamily permits (#) 7,129.0 10,491.0 11,395.0 7,993.0 9,276.0 6,044.0 6,977.0 7,409.7 9,699.0 10,101.6 10,447.7 10,568.2 10,276.3
Source: Moody’s Analytics (Q4 2022)
EMPLOYMENT BY INDUSTRY
Industry # (ths) % of Total
Trade, Transportation, Utilities 958 20.5%
Professional & Business Services 835 17.9%
Education and Health Services 753 16.1%
Government 523 11.2%
Leisure and Hospitality 446 9.6%
Manufacturing 409 8.7%
Financial Activities 313 6.7%
Other Services* 273 5.8%
Construction 164 3.5%
Total 4,673 100.0%
Source: U.S. Bureau of Labor Statistics (February 2023)
*Other services includes information, mining, logging and other
34 | Market Dynamics
14. #1
Metro Area for Corporate
Investment; 9 Consecutive Years
(Site Selection Magazine, 2022)
#1
Metro Area for Corporate
Investment; 9 Consecutive Years
(Site Selection Magazine, 2022)
33
Fortune 500 Companies
33
Fortune 500 Companies
#1
in North America for Transport and
Warehousing Cities of the Future
(FDI Intelligence, 2020)
#1
in North America for Transport and
Warehousing Cities of the Future
(FDI Intelligence, 2020)
44
Corporate Headquarters
44
Corporate Headquarters
#1
Metro for Foreign Direct
Investment
(IBM Global Location Trends)
#1
Metro for Foreign Direct
Investment
(IBM Global Location Trends)
#2
Largest Derivatives Exchange in
the World
#2
Largest Derivatives Exchange in
the World
Market Dynamics | 35
15. McCormick Place
Convention Center
McCormick Place, situated 3.4 miles south of the Hotel, has played an integral
role in Chicago’s emergence as the leading convention destination in both the
national and international arenas. The complex, which attracts more than three
million annual visitors to trade shows and conventions, consists of four state-of-
the-art buildings with a combined total of more than 2.6 million square feet of
exhibit space, 1.3 million square feet of which is located on a single exhibition
floor. McCormick Place also features 173 meeting rooms, the largest ballroom in
Chicago, the Arie Crown Theater, which seats over 4,200 people, and the 10,000-
seat Wintrust Arena. The Wintrust Arena, which opened in 2017, is a multi-purpose
venue ideal for concerts, business meetings, conventions, and sporting events as
the new home court for DePaul University’s men’s and women’s basketball teams,
as well as Chicago’s WNBA team, the Chicago Sky.
According to Choose Chicago, the city averaged 37 citywide conventions (events
with over 3,000 attendees) generating 1.14 million room nights per year between
2015 and 2019. During that period, citywide events represented approximately 54
percent of total event-related room nights.
Convention business in Chicago commenced a recovery in 2022 with 1.6 million
room nights on the books, representing an increase of over 2.5 times 2021’s
production and over 75 percent of 2019’s year-end totals. Chicago conventions
hosted in 2022 have performed strongly with ADRs for the Chicago CBD over
citywide event dates up by 12 percent compared to ADRs over the same citywide
event dates in 2019. Furthermore, room night production from recurring events
has also rebounded considerably, reaching 93 percent of pre-pandemic produc-
tion from the same events. As of Q1 2023, Choose Chicago indicated there are
1.6 million room nights a year on the books for 2023 pacing at roughly 81 percent
of 2019 and 1.5 million for 2024 pacing at 100 percent of 2019, which produced
2.2 million room nights. This swift return of convention business to Chicago is a
strong indicator of the depth and stability of the Chicago lodging market for both
the near and long term. The convention center is also anticipated to have robust
2024 performance as a result of the bi-annual events that create better compres-
sion in the market in even calendar years.
#1
Largest Convention Center in North America
2.6
Million Square Feet of Exhibit Space
#2
2022 U.S. Meeting Destination Meetings
Information Network
3M
Visitors per Year (Pre-COVID)
$9.4B
Annual Economic Impact
44 | Market Dynamics
16. Corporate Demand
1 United Continental Holdings HQ
2 Wiliam Blair HQ
3 The Mart - Conagra Brands & Motorola Mobility
4 Grant Thornton LLP HQ
5 Tribune Media Company
6 American Dental Association HQ
7 600 W Chicago - Groupon HQ & Echo Global Logistics HQ
8 Leo Burnett Worldwide
9 Jenner & Block HQ
10 The Old Post Office - Uber
11 Northwestern Memorial Hospital
12 Ann & Robert H. Lurie Children’s Hospital
13 Shirley Ryan Ability Lab
14 Northwestern University Feinberg School of Medicine
15 Northwestern Pritzker School of Law
16 Apple Michigan Avenue
17 Blue Cross and Blue Shield of Illinois
18 Aon Center - AON, KPMG, & JLL
19 One Prudential Plaza
Leisure Demand
1 875 N Michigan Ave (FKA John Hancock Building)
2 Oak Street Beach
3 Millennium Park
4 Navy Pier
5 Lakeshore East Park
6 Chicago Riverwalk
7 Museum of Contemporary Art Chicago
8 Chicago Architecture Center
9 The Chicago Theatre
10 Goodman Theatre
11 Cadillac Palace Theatre
12 Civic Opera House
13 Willis Tower
14 CIBC Theatre
15 The Art Institute of Chicago
New Development
1 One Chicago
2 Old Chicago Post Office Renovation
3 Bank of America Tower
4 Salesforce Tower
5 BMO Tower
6 306 W Erie St Office
7 448 N LaSalle St Office
8 311 W Huron St Office
9 450 N Dearborn St Office
10 433 W Van Buren St Office
11 Bally’s Casino Chicago
12 Willis Tower Office Renovation
13 James R. Thompson Center (Google)
50 | Market Dynamics
18. Chicago Lodging Market Overview
As of April 2023, the Chicago MSA lodging market is comprised of approximately +/- 123,300 guestrooms across 836 hotels. The market benefits
from a strong corporate environment and diverse demand sources, including a mix of educational institutions, tourist attractions, professional
sports teams, and renowned cultural institutions. The Chicago MSA performed well over the most recent cycle, recording an impressive 4.7 per-
cent RevPAR CAGR between 2009 and 2019. In 2022, RevPAR recovered to 96 percent of 2019 levels and in the March YTD period has increased to
102% of March 2019 levels, driven primarily by group and leisure demand.
54 | Hotel Market Overview
19. Subject 1 2 3 4 5 6
Property Residence Inn River North Hotel Cass Courtyard River North
Hampton Inn Chicago
Downtown
Homewood Suites
Chicago Downtown
Sonesta ES Suites
Chicago Downtown
Kinzie Hotel
Address 410 N Dearborn Street 640 N Wabash Ave 30 E Hubbard Street 33 W Illinois Street 40 E Grand Ave 201 E Walton Place 20 W Kinzie Street
Distance from Subject - 0.4 mi 0.2 mi 0.7 mi 0.3 mi 0.5 mi 0.1 mi
Open Year 2008 1927 1992 1998 1999 1991 2003
# of Rooms 270 174 337 230 233 221 215
Total Event Space (SF) 1,358 None 4,994 4,774 2,000 496 2,300
Largest Event Space (SF) 938 NA 2,418 1,640 1,058 496 848
FB Outlets
Complementary Breakfast;
Holloway's Bar; Hub 51
Complementary
Breakfast
None
Complementary
Breakfast
Complementary
Breakfast
Complementary
Breakfast
Complementary
Breakfast; Double Cross
Lounge
Other Amenities
Fitness Center;
Convenience Store
Fitness Center; Business
Center
Indoor Pool; Fitness
Center; Convenience
Store
Indoor Pool; Fitness
Center
Indoor Pool; Fitness
Center; Business Center
Fitness Center; Business
Center
Fitness Center; Business
Center; In-Room Dining
from Butler Hospitality
Parking
Self: $55
Valet: $64
Valet: $54 Valet: $72/day
Valet: $65/day
Self: $55/day
Valet: $67/day
Self: $55/day
Self: $70/day Valet: $71/day
RESIDENCE INN RIVER NORTH COMPETITIVE SET
CHICAGO
CHICAGO
56 | Hotel Market Overview
