Prime Group Secures $50M TIF Loan for 308-Room 111 W. Monroe Hotel Conversion

The Community Development Commission has approved a $50 million Tax Increment Financing (TIF) loan to support the hotel portion of the major adaptive reuse of the Harris Trust & Savings Bank building at 111 W. Monroe in Chicago’s Loop. The project, led by a partnership between The Prime Group and Capri Investment Group, involves a total conversion of the 1911 Classical Revival structure and its 1960 East Tower addition. The hotel component, budgeted at $166.5 million, will feature 308 rooms and suites, 20,000 square feet of meeting space, two restaurants, and the restoration of the penthouse-level "Monroe Club."

In addition to the hotel, the redevelopment includes 345 residential units on the building's upper levels, 104 of which will be designated as affordable. The $50 million TIF funding, which requires final approval from the City Council, will operate as a loan with interest-only payments for five years following project completion. While an interior demolition permit has been issued, construction timelines remain subject to the finalization of the project's complex capital stack, which also includes C-PACE funding and Historic Tax Credits. McHugh Construction and BOWA Construction are serving as the general contractors.