In its first real estate development project in Chicago, Mortenson has teamed up with lead developer Akara Partners to design and build a $67 million extended stay hotel in River North. The hotel is being designed by NORR Architects under a design-build arrangement with Mortenson for the the 17-story, 206-room Home2 Suites by Hilton hotel.
Mortenson and Akara Partners broke ground on the project at 110 W. Huron on Oct. 5.The site, at the corner of Clark and Huron streets, is currently a parking lot owned by Akara. The 120,000 sq. ft. building is scheduled to open in the first quarter of 2019 and will include 5,000 sq. ft. of ground floor retail space.
“We see a tremendous opportunity for an extended stay hotel in River North, which is historically undersupplied for this product type compared to other major markets,” said Rajen Shastri, the founder/CEO of Akara Partners. “We sought out Mortenson as a partner for development and construction of this River North hotel because they bring an outstanding track record in the hotel development and construction industry.”
Mortenson has developed more than $600 million of hotel projects across the United States in the past five years. It also has extensive hotel building experience, completing more than 100 new construction and renovation projects, including modernizing the Cambria Hotel on East Superior St. and the Hilton Chicago on South Michigan Ave.
“Our partnership with Akara has given Mortenson the opportunity to showcase our development and design-build capabilities in the downtown Chicago marketplace,” said senior vice-president Greg Werner, who leads Mortenson’s Chicago office. “This is one of several active hotel development and construction projects that Mortenson has underway nationally.”
Chicago issued a “foundation only” permit for the start of the project valued at $10 million on Aug. 28. Subtrades include: Electrical – Titan Electric LLC.; masonry – Pepper Construction Co.; and plumbing – James P. O’Sullivan.