Prime/Capri Wins $50M TIF Loan for 111 W. Monroe Hotel Conversion

The Chicago City Council finalized a $50 million tax increment financing loan for the hotel portion of 111 W. Monroe Street’s conversion from the landmarked Harris Trust & Savings Bank building into a 308-room hotel with apartments above it. The council passed the measure, ordinance SO2026-0027146, by a 50-0 vote on Sept. 23, after Alderperson Mitchell’s motion to reconsider failed and Alderperson Dowell’s motion to pass carried instead.

The borrower of record is 111 Monroe Hotel Landlord LLC, the entity behind The Prime Group and Capri Investment Group’s redevelopment of the site, a combined 1911 Classical Revival skyscraper and 1960 modernist East Tower at the southwest corner of Clark and Monroe streets. The project converts roughly 345 apartments and a 308-room hotel inside a building that has sat largely vacant since Bank of America moved out.

For a developer or lender watching Loop office-to-residential conversions, this is a usable data point rather than a one-off: the city is willing to backstop a landmark bank tower’s hotel component with public money once the deal clears committee, and a motion to kill it on the floor still failed by a wide margin.

Why it matters

A 50-0 vote after a failed reconsideration motion tells a developer the political risk on this specific deal is effectively gone. The TIF loan is scoped to the hotel piece of a mixed-use conversion, not the residential units, which matters to anyone structuring a similar adaptive reuse of an aging Loop office or bank building: the city’s subsidy appetite here attached to job-generating hospitality space, not apartments. Lenders and equity partners on comparable landmark conversions elsewhere in the Loop now have a recent, specific precedent for the kind of financing package the city will approve and at what scale.

The numbers

The ordinance authorizes a $50 million TIF loan tied to the hotel component of the Harris Trust & Savings Bank conversion at 111 W. Monroe St. The council passed it 50-0 on Sept. 23, 2026, after introduction on July 15 and a Committee on Finance recommendation on Sept. 22. The hotel is planned for 308 rooms inside the historic tower, with roughly 345 apartments in the balance of the building. No figure for the total project cost is cited in the council record itself.

What’s next

The redevelopment agreement clears the City Council’s piece of the financing; construction timing and a hotel operator have not been disclosed in the public record. A building permit, a flag announcement, or a subsequent TIF draw filed with the city would be the next verifiable marker on this conversion. For more on Loop office conversions and the rest of Cook County’s commercial market, see Chicago.