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Oxford Capital, Quadrum Global land $170M loan to revamp Essex Inn, build new apartment tower

Oxford Capital Group and Quadrum Global secured a $170-million loan to contribute to the construction of the luxury apartment building, Essex on the Park, set to open in 2019.

A new tower is set to rise alongside one of Chicago's most iconic.

Essex on the Park -- a planned 56-story, 479-unit luxury apartment building -- is set to open in 2019 alongside an expected upgrade for the Essex Inn. The construction will be aided by a $170-million loan secured by Oxford Capital Group, LLC and Quadrum Global, the companies said Tuesday.

The new apartment building will be at 808 South Michigan Ave., accompanying the Esssex Inn's expected expansion to 271 rooms from 254 rooms, which will also be "comprehensively repositioned and upgraded" into the Hotel Essex, which will remain at 800 South Michigan Ave.

The development isn't the first between Oxford and Quadrum. The two firms also developed the Godfrey Chicago, at 127 W. Huron St., which boasts itself as the biggest rooftop lounge, indoor and outdoor, in Chicago. Oxford has previously led projects on The Langham, LondonHouse and Hyatt Chicago Magnficient Mile, formerly The Wyndham Chicago.

"We have long been believers in the desirability and irreplaceability of Michigan Avenue real estate in Chicago," said John Rutledge, founder and chief executive officer of Oxford Capital, a Chicago-based developer, in a statement. "We are also believers in the continued and growing attractiveness of 'walk to work and walk to play' downtown living for people across the demographic spectrum. We're excited to get started."

Units at the new Essex on the Park will have 9-feet- to 10-feet-tall ceilings. quartz countertops and in-unit washer and dryer, the company said. Apartments will range from studios and convertibles, all the way up to three-bedroom units.

The building's top two floors will include "four extraordinary penthouse duplexes featuring elegant finishes, gourmet kitchen, large master suite, private outdoor space," the company said.

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The building will also play host to a game room, conference room, fitness center, exhibition kitchen, bike storage and four floors of onsite parking. Essex on the Park will also offer "in-building access" to a three-meal restaurant, a "sky bar" and a late night venue, called SX, whcih will overlook Grant Park and Lake Michigan.

Mission Capital Advisors advised ownership on the deal, and assisted in the financing for the deal.

"To us, this underscores the continued strength of Chicago's Downtown market, the city's vibrant economy, as well as Essex's unique location and the strength of sponsorship," said Oleg Pavlov, chief executive officer of Quadrum Global.