Marc Realty Capital and DDG, through a joint venture, will manage the $105 million redevelopment of a dairy supply industrial facility in Chicago's Fulton Market District into a 13-story hotel with at least 250 rooms.
Real estate crowdfunding platform Prodigy Network said in a release that it will be the majority partner of the joint venture, and Standard International Management LLC will operate the proposed hotel at 1234 W. Randolph St.
Prodigy Network is conducting an equity offering to raise about $55 million for the project, with an additional equity investment expected to come from DDG and Marc Realty. The hotel is expected to be in operation in 2021 and will be the first Midwest location for The Standard Hotel brand, Prodigy said.
The venture, which will be led by DDG, intends to acquire unused density allowance from the nearby City Winery for the site in order to develop a 175,000-square-foot building, Crain's Chicago Business reported, citing unnamed sources. The venture will acquire the property from New Dairy if it can secure approval for its development plan.
Crain's could not obtain a comment from Marc Realty, DDG or New Dairy.