On April 26, 2022, it was announced that a nearly century-old hotel building in Alexandria, Virginia‘s historic Old Town neighborhood soon will be bustling with activity again.
Hotel Heron, an approximately 90,000-square-foot urban adaptive-reuse development, is set to begin construction in June 2022 now that financing has closed on the $76.5 million project.
Of that total, $59.2 million is being made available by St. Louis, Missouri-based Twain Financial Partners through a mixture of sale leaseback financing and both federal and state historic tax credit equity.
“This project is a great example of Twain bringing a near complete capital stack solution to one project,” said Kelly Iffrig, project manager and senior counsel at Twain.
“Between the leaseback and the tax credits, we are able to provide the development team with the funding they need to get this hotel from concept to completion,” she added.
The Hotel Heron project will restore the original George Mason Hotel building, which was constructed in 1925.
The facility will contain 134 rooms and 30,000 square feet of amenity, meeting space, restaurant space, and ground-floor retail one block away from the “main and main” intersection of King and S. Washington streets.
The property currently is used as an office building and parking garage.
Financing closed earlier this month, and the project has an anticipated completion date in November 2023.
The redevelopment team includes May Riegler Properties and Potomac Investment Properties.
The hotel and restaurant will be managed by Aparium Hotel Group.
Twain Financial Partners is a full-service specialty finance firm with $4 billion in assets under management providing a full range of capital needs to real estate and renewable energy developments throughout the United States.
Images courtesy of May Riegler Properties.