Hotel Kaskaskia 217 Marquette St 96 Room Hotel La Salle, IL 61301 $700,000 ($7,292/Room)

The Kaskaskia Hotel presents a rare opportunity to revitalize a landmark 1915 property in the heart of La Salle, Illinois—just 90 miles west of Chicago and minutes from Starved Rock State Park, a major tourism draw with over 2 million annual visitors. This six-story, 107,668-square-foot structure, designed by Marshall & Fox, is being repositioned as either a 96-key boutique hotel or a 60-unit workforce housing development.
The hotel concept includes upscale rooms, a 16,509 SF event and conference center, fine dining, rooftop lounge, indoor pool, and fitness center. Alternatively, the workforce housing model leverages Low-Income Housing Tax Credits (LIHTC) and historic tax credits to deliver affordable units with strong underwriting fundamentals.
The project benefits from up to 45% in combined federal and state historic tax credits, plus incentives from the River Edge Redevelopment Zone (RERZ), including sales tax exemptions, potential property tax abatements, and TIF district support. These incentives significantly reduce equity requirements and enhance investor returns.
La Salle’s strategic location at the crossroads of I-80 and I-39, its low crime rate, and vibrant downtown revitalization efforts make this a compelling redevelopment play. With projected RevPAR growth from $75 to $141 and ADRs reaching $201 by Year 11, the hotel model is poised for strong cash flow. The workforce housing alternative also shows robust NOI growth and a 1.6x DSCR post-stabilization.