Wednesday, April 28, 2010

Chicago Gold Coast hotel misses loan payments

Crain’s) — The owner of the Hotel Indigo in the Gold Coast has fallen behind on loan payments, another case illustrating the downside of loading up on debt at the peak of the market.


Three years after refinancing the hotel with a $27-million loan, Neighborhood Development Corp. is in jeopardy of losing the property at 1244 N. Dearborn Parkway, which is no longer generating enough cash flow to cover $2 million in annual debt service costs.

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