HFF secured combined financing totaling $42.2 million for the development of a 161-key, select-service Hyatt Place hotel in Arlington, Va., Mortgage Observer can first report.
The brokerage worked on behalf of a partnership between Schupp Companies and LodgeWorks Partners to secure a $32 million, five-year senior construction loan through Bethesda, Md.-based EagleBank and $10.2 million in mezzanine debt through Austin-based Endeavor Real Estate Group. The combined financing makes up 85 percent of the capital stack, according to HFF.
The upcoming Hyatt Place Arlington will be located at 2401 Wilson Boulevard at the intersection of Wilson Boulevard and North Adams Street in Arlington’s Rosslyn-Ballston corridor.
In addition to 161 rooms, the 93,000-square-foot hotel will contain 1,200 square feet of street-level retail space, a café and bar on the first floor, and a two-level underground parking garage.
The developers broke ground on the project in January with a completion date set for next year.
HFF Managing Director Mark Remington and Associate Directors Cyrus Vazifdar and Neil Campbell led negotiations on behalf of the borrowers.
“Schupp Companies and their partners are dedicated to the Hyatt Place Arlington obtaining LEED Gold Certification, which would make the hotel Arlington’s first LEED Gold hotel and Hyatt’s first LEED Gold Hyatt Place in the United States,” Mr. Remington said.