(Left) London Guarantee Building from across Wacker Drive in 2013. (Click on images to view larger version.)

December 31, 2014 – The new owners of the old London Guarantee Building now have building permits that estimate it will cost $84.1 million to convert their 91-year-old building into a 372-room hotel.

The latest permit was issued on December 23 for construction of a 22-story addition on a former parking lot west of the existing building. It will give the hotel another 80 rooms when it opens in 2016. A temporary tower crane is currently installed in this area.

The architect listed on the permit, Michael Kaufman, managing partner of Goettsch Partners, also worked on renovation at AMA Plaza for The Langham.

In the original 21-story building, it is a gut rehab. Crews have been working on the foundation, demolishing the interior, replacing windows, and renovating masonry.

Chicago-based Oxford Capital Group, LLC, and investment advisors Angelo, Gordon & Co. bought the hotel in 2013, reportedly paying $57 million.

On November 19, the Chicago City Council approved a tax incentive for the hotel, reducing its property taxes by as much as $9.9 million over 12 years if it spends at least half of the building’s market value on the rehab.

(Right) A tower crane is assembled on the west side of London Guarantee Building on December 19. Photo by Kenneth Schadt.