Construction Loan Monitoring for a New Hotel in Illinois
McCormick Place, the nation’s largest convention center, brings in nearly 3 million visitors each year. Many of these visitors attend conferences that extend over several days or weeks. To meet the needs of long-term visitors, Hilton, along with First Hospitality Group, proposed a new extended stay hotel development adjacent to the convention center. The proposed hotel development would be tri-branded (Hilton Garden Inn, Hampton Inn by Hilton, and Home2 Suites by Hilton) and would include various hospitality amenities, a rooftop restaurant, and first-floor retail spaces. Additionally, the proposed development would have direct access to the convention center with an attached third-floor pedestrian walkway.
The new hotel development was designed as a twenty-three-story structure and was constructed from the ground up over a two-year period. The project commenced with a deep foundation system and continued with a consecutive sequence of concrete pours for the pre-stressed concrete vertical superstructure. With more than a dozen trades on site each day, project management became an essential aspect to the construction progress.
AKT Peerless was retained by CIBC Bank as their construction monitoring representative, providing preliminary construction analysis and routine construction monitoring throughout the construction of the Hotel. AKT Peerless has reviewed monthly pay applications and assessed the level of quality control by reviewing project documents, permits, and third-party testing reports. During inspections, AKT Peerless evaluated the security of stored materials and identified any construction concerns that deviated from the plans and specifications.
AKT Peerless’ comprehensive monitoring services provides CIBC Bank: Protection from liability exposure during the initial review of the construction documents. Recommendations for budgetary contingencies to account for unforeseen conditions. Recurring updates on any potential risks or modifications to the construction design throughout the construction. Assurance that the monthly disbursements of loan funds were not premature but were consistent with the appropriate project milestones.
