Reschke Eyes Suburban Hotels For Migrant Housing

Chicago developer Mike Reschke is stepping up to the plate in the wake of thousands of unhoused migrants in the city.

Reschke, along with representatives from AmTrust Realty and the Building Owners & Managers Association, met with city officials last month to discuss ideas for sheltering migrants, Crain’s reported.

Reschke has since initiated conversations with various suburban mayors and hotel owners regarding the use of underutilized or dilapidated hotels. Roughly a half dozen suburban hotels are now on the table as potential migrant housing facilities, each with an average capacity of about 250. The Prime Group CEO aims to submit a formal proposal to the city within the next couple of weeks, which could amount to as many as 2,000 rooms being considered for shelter.

“We own a bunch of hotels, but they’re all reasonably successful today and they’re not really conducive for immigrant housing,” Reschke told the outlet. “But I’m in the industry, I know a lot of friends and acquaintances that have such facilities that would be happy to sell, or I know a lot of banks and lenders that have real estate on their balance sheet that they took back for foreclosure.”

Reschke believes hotels are better suited for migrant housing than winterized base camps, warehouses or schools, as they already have private rooms and large banquet halls.

While a number of hotels outside the city may be equipped for sheltering migrants, suburban properties could pose challenges in delivering social services efficiently due to their dispersed nature. The city is exploring whether to acquire or lease hotels for use as shelters, or if private companies like Reschke’s could manage them for a fee. The lack of additional state or federal funding to manage the crisis complicates the decision-making process.

A vacant River North building was recently identified as a possible migrant housing facility, after Alderman Brendan incorrectly said the nearby Hotel Chicago was being considered for such purposes.

—Quinn Donoghue