Walker & Dunlop Secures $15M Loan for Pittsburgh Hotel
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The company worked on behalf of the borrower, Reception Hotels and Resorts LLC, to provide the three-year, non-recourse construction loan. Reception Hotels and Resorts purchased the fifth and the sixth floors for the hotel.
By Adina Marcut
Walker & Dunlop closed a $14.9 million construction loan with Orix USA for EVEN Hotel. Jacob Cohen secured the non-recourse loan with three-years of interest-only payments on behalf of Reception Hotels and Resorts LLC. EVEN Hotel, owned by InterContinental Hotels Group, will be a boutique hotel located in the historic Kaufmann’s department store building in downtown Pittsburgh. Edgar Kaufmann, patron of Fallingwater together with the original owner Frank Lloyd Wright, will be designing the executive offices of the building.
The hotel will be part of the Kaufmann’s Grand on Fifth, a master redevelopment on the former department store that will feature a mix of retail, hospitality, multifamily and office space. The borrower, Reception Hotels and Resort acquired the fifth and sixth floors for the hotel. Built in 1887, the property, also known as The Big Store, was the largest department store in the area.
Located at the corner of 401 Fifth Ave. and 498 Smithfield St., the hotel is in close proximity to the David Lawrence Convention Center, Pittsburgh’s Theater District, PNC Park, Heinz Field and other business headquarters. EVEN Hotel will feature amenities such as a 1,500-square-foot fitness center, flexible workspaces and a variety of dining options.
“The success of this transaction required coordination with several different parties; not just the Borrower and lender, but those who focused on the retail, office, and entertainment spaces within the building, as well as coordinating intercreditor agreements with the bridge lender for the historical tax credits,” Cohen said in a statement. “We are confident that this cornerstone investment will be transformative for both the Borrower’s portfolio and the downtown Pittsburgh area.”
Back in August, Walker & Dunlop closed $59 million in bridge and equity financing for the acquisition of Newmarket Business Park in Marietta, Ga.
Image courtesy of Walker & Dunlop