Synovus Bank Provides $39M Construction Loan to Expand Tallahassee Hotel

Urban Street Development has secured $38.5 million in construction financing to fund an expansion of Hotel Indigo Tallahassee – CollegeTown, a 143-room hotel in Tallahassee, Fla.

Synovus Bank provided the five-year loan, which will refinance the first phase of the project — a seven story mid-rise hotel completed in 2020 — and fund the second-phase expansion that will add 94 rooms and 5,500 square feet of ground-floor retail. The second phase is under construction and will be completed by 2026.

The financing was arranged by Berkadia Miami’s Brad Williamson, Berkadia Boca Raton’s Mitch Sinberg, Scott Wadler and Matt Robbins, and Berkadia Hotels & Hospitality’s Kyle Ryan and Harry Mancera. 

Williamson said in a statement that Synovus Bank “saw a unique opportunity” to finance the second-phase expansion of a hotel that continues to benefit from the cash flow stemming from the first phase of construction. 

“Since its delivery in 2020, the Hotel Indigo Tallahassee – CollegeTown has been the top-performing asset in the market, leading the competitive set” on revenue per available room, added Williamson. 

The CollegeTown hotel and others under the Hotel Indigo label are part of IHG Hotels & Resorts, whose corporate umbrella also includes Holiday Inn, Kimpton Hotels, Crowne Plaza and other hotel brands.

Located at 826 West Gaines Street, the hotel is near Florida State University’s campus and sits across the street from the 79,560-seat Doak Campbell Stadium, home to the Florida State Seminoles college football team. 

Hotel Indigo is part of Urban Street Development’s larger CollegeTown redevelopment and renovation of Downtown Tallahassee, a multiphase, mixed-use development that is expected to encompass 580,000 square feet of commercial space, including 78,000 square feet of new retail. 

All told, the CollegeTown redevelopment is expected to add 608 student beds, 318 residential units and two parking garages to the neighborhoods surrounding Florida State University. 

Alan Hooper, co-founder of Urban Street Development, called the expansion of the Hotel Indigo Tallahassee – CollegeTown “the final piece” of his firm’s CollegeTown redevelopment plan. 

“This expansion embodies the original mission; to deliver a vibrant, mixed-use community that enhances the FSU experience,” said Hooper. “The expansion will build on the original hotel by offering an elevated stay for visitors and enriching the surrounding neighborhood with its proximity to Florida State University and Downtown Tallahassee.” 

Brian Pascus can be reached at bpascus@commercialobserver.com