Walker & Dunlop, Inc. (NYSE: WD) announced today that it closed a $14,900,000 construction loan for EVEN Hotel, which will be located in the historic Kaufmann's department store building in downtown Pittsburgh, Pennsylvania.
Built in 1887, this Pittsburgh landmark, also known as "The Big Store," was the largest and most prominent department store in the area, spanning an entire city block. Edgar J. Kauffman, patron of Fallingwater and the original property owner, commissioned Frank Lloyd Wright to design the executive offices of this iconic building.
EVEN Hotel is part of a master redevelopment, dubbed Kaufmann's Grand on Fifth, which will include retail, hospitality, multifamily, and office space. Reception Hotels and Resorts LLC (the "Borrower") negotiated the acquisition of the fifth and sixth floors of the property. The hotel enjoys a prime location, within walking distance to the David L. Lawrence Convention Center, Pittsburgh's Theater District, PNC Park, Heinz Field, and numerous business headquarters.
The loan was closed with Orix USA on behalf of Reception Hotels and Resorts LLC. The non-recourse loan includes three years of interest-only payments, and utilized historical tax credits. Vice President Jacob Cohen stated, "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. We are confident that this cornerstone investment will be transformative for both the Borrower's portfolio and the downtown Pittsburgh area."
"Identifying and closing with a non-recourse construction lender in today's market is a real challenge. Jacob Cohen from Walker & Dunlop brought us a great lender, and was a pleasure to work with throughout the process," commented Akiva Feinsod, a principal of Reception Hotels and Resorts LLC.
EVEN Hotels, owned by InterContinental Hotels Group, is a new boutique hotel brand that received one of the 2017 TripAdvisor® Travelers Choice® Awards, ranking as one of their Top 25 Hotels in the United States. This property is one of the first ten EVEN Hotels in the country. Catering to business travelers and city visitors, the hotel includes a 1,500-square foot gym, flexible workspaces, and a variety of dining options.
For additional information on the Company's financing solutions for hospitality properties, please view some of our recent press releases below.
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About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate services and finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has over 600 professionals in 28 offices across the nation with an unyielding commitment to client satisfaction.