WEST LOOP — A team of investors is looking to redevelop a dairy supply facility into a 13-story Standard Hotel in the booming West Loop.
Chicago-based Marc Realty and New York-based DDG Partners are teaming to raise $55 million dollars to acquire the A New Dairy Co. site at 1234 W. Randolph St. and ultimately convert it into a massive 175,000 square foot hotel, according to a Crain’s report.
In total, the developers estimate the project to cost $105 million and they would invest an additional $45 million in the development, according to a Prodigy Network, a real estate crowdfunding platform, who will be a partner in the venture.
The New York-based Standard Hotel brand would operate the hotel, which would include at least 250 rooms, a fitness center, event space and multiple restaurants and bars.
If all goes well, the partners aim to acquire the property and begin developing the site as early as this year, according to Prodigy Network crowdfunding page. They estimate the hotel could open in 2021.
As of Monday afternoon, the crowdfunding page had raised 16 percent of the funds needed to build the hotel.
If the plan gets off the ground, the West Loop’s Standard Hotel would be the first in the Midwest. The chain currently operates other hotels in London, Los Angeles and Miami.
The New Diary facility, which spans 28,106 square feet, was listed for sale in 2016, according to Nelson Hill, a real estate firm.
Michael D. Nelson, who is one of the principal brokers overseeing the site, said he could not disclose whether New Diary had been approached by Marc Reality and DDG Partners to acquire the site.
If the sale and project are approved, the Standard Chicago would add another hotel to the burgeoning luxury hotel scene in West Loop.
The Hoxton Hotel will open its 182-room building in April. Nobu Hotel, which was approved in 2015, is expected to open later this year. The West Loop is also home to the Ace Hotel and Soho House.
Calls and emails to Marc Reality, DDG Partners and New Diary were not immediately returned.
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