DC Hotel Development Underway After $6M Crowdsourced Funding
A Wilmington, Del.-based developer has raised $6.2 million on the online investing platform CrowdStreet to develop the 235-room Washington Marriott Capitol Hill/NoMa in Washington, D.C., Commercial Observer has learned.
The Buccini/Pollin Group raised the funds to develop the 13-story hotel, which will be located at the intersection of First and L streets, NE, just north of Union Station and Capitol Hill. Construction is already underway at the hotel, which had $105.1 million total project capitalization.
The CrowdStreet funding involved 145 individual investors.
“The equity we sourced on CrowdStreet is the last piece of the puzzle for this project, an institutional quality property that we expect will perform well as the market for travel and tourism recovers,” Brandon S. Flury, senior vice president for The Buccini/Pollin Group, said. “The hotel’s location in close proximity to Capitol Hill and the Union Station transit hub also makes it a likely beneficiary of government and lobbying activity, as well as travelers who need to access the Washington, D.C., central business district and the Maryland and Virginia suburbs.”
The new hotel will be part of the mixed-use project NoMa CNTR in the NoMa (North of Massachusetts Avenue) neighborhood, which is experiencing a booming residential and office market.
The hotel, the latest in The Buccini/Pollin Group’s growing portfolio, is scheduled to open in the last quarter of 2022 and will be managed by PM Hotel Group. It will feature a glass-enclosed, two-story lobby; ballroom; restaurant with indoor and outdoor dining; and Marriott’s signature M club.
“2021 will likely mark the beginning of sustained recovery for the hospitality sector,” Benjamin McFarland, senior managing director of CrowdStreet, said. “This is an institutional-quality asset serving a historically strong market, and it’s likely to come online with the recovery under way.”