Six months after breaking ground on the Nobu Hotel in the Fulton Market District, the project’s developer has stopped work and is trying to finalize how to pay for it, Crain’s Chicago Business reports.
The developer is soliciting a $52.5 million construction loan needed to complete $72.5 million project Crain’s reports.
“Aries Conlon principal Sean Conlon said M Development, owned by developer Mark Hunt, has been financing construction on its own, but that Conlon has term sheets in hand from interested lenders,” the business publication reported.
It is unusual for a developer to seek a construction loan well into the construction project.
M Development general counsel Jeff Richman told Crain’s that work on the hotel has been “temporarily suspended” because of “design and programmatic changes” that the developer wanted to work through before proceeding. He denied that the work suspension had anything to do with a payment dispute or the recent call for financing.
“We have proposals for a construction loan. We just haven’t selected which lender we’re going with yet,” Richman was quoted as saying. “We have not had an issue with obtaining financing.”
Building permit records indicate a $32 million permit was issued on Aug. 4 for the project, following an earlier foundation permit.
Subtrades include: Electrical – Continental Electrical Construction; masonry – Four Province Masonry, Inc., and Pepper Construction Co.; plumbing – R. Carrozza Plumbing Co.; and refrigeration and ventilation – Arrigo Enterprises, Inc.