A Chicago-based hotel developer plans to purchase the Westin Book Cadillac in downtown even as it breaks ground this week to build The Godfrey Hotel Detroit in Corktown.
A document posted on the City of Detroit’s website states that Book Cadillac Detroit Propco LLC, a subsidiary of Chicago-based Oxford Capital Hotels, plans to purchase and renovate the hotel at 1114 Washington.
Oxford will assume the $77 million in debt owed by Cleveland-based Ferchill Group under terms of the transaction, as first reported by Crain’s Detroit Business. The document, a tax incentive request, says Book Cadillac Detroit Propco LLC plans to spend $16 million to renovate the 97-year-old building.
Earlier this year, the Westin Book Cadillac faced foreclosure as John J. Ferchill of Cadillac Funding Associates LLC, had been delinquent on a $77 million commercial mortgage-backed securities loan since May 2020, according to commercial real estate research firm Trepp LLC.
As of June of this year, the loan was no longer in foreclosure, instead showing as 90-plus days delinquent, according to Trepp. Revenue from 2020 was $9 million, down from $38.7 million at the time the loan was secured. Expenses were also down.
Ferchill declined to comment Wednesday.
The upcoming sale of the Book Cadillac comes as Oxford Capital and Farmington Hills-based Hunter Pasteur break ground this week on The Godfrey Hotel Detroit in Corktown. The 227-room hotel at 1401 Michigan Ave. is set to open in 2023.
“We are excited to achieve this important milestone as we continue our strategic national investment, development and acquisition activities while simultaneously growing our lifestyle Godfrey hotel brand throughout the country,” John W. Rutledge, founder, chairman and CEO of Oxford Hotels & Resorts LLC and Oxford Capital Group LLC, said in a statement this week.
“The project will be just a few blocks from Michigan Central Station, Ford’s new billion-dollar campus and a significant development in Detroit’s resurgence.”