Donohoe Lands $75M Construction Loan For Dual-Branded Reston Town Center Hotel
A new hotel development at Northern Virginia's Reston Town Center has landed a $74.7M construction loan even as rising interest rates and economic uncertainty have led many lenders to pull back in recent months.
The Donohoe Cos. secured the financing from Artemis Real Estate Partners to build a dual-branded Marriott AC Hotel and Residence Inn hotel totaling 267 rooms.
Donohoe is developing the hotels through a ground-lease agreement with BXP, the master developer behind the pioneering Reston Town Center mixed-use complex. JLL's Jamie Leachman and Chris Hew represented Donohoe in the financing deal with Artemis, a Chevy Chase, Maryland-based firm that makes equity and debt investments in commercial real estate.
“We are thrilled to collaborate with Artemis to close this financing in an extremely challenging capital markets environment,” Donohoe Chief Investment Officer Robert Donohoe said in a release. “Artemis was able to provide a structure consistent with our business plan while addressing the complications associated with financing a component of a larger development.”
Located at 1975 Opportunity Way, the hotel is part of a major expansion of Reston Town Center connecting it to the newly opened Silver Line station. The office portion of the expansion landed an 850K SF lease with Fannie Mae in 2018 and a 196K SF lease with Volkswagen Group of America in 2020.
The dual-branded hotel will feature 120 rooms under the extended-stay Residence Inn flag and 147 rooms under the upscale boutique AC Hotel flag. Donohoe said it is the first hotel to combine these two Marriott International brands.
Designed by Cooper Carry, the hotel will have amenities including an indoor pool, a fitness facility and a 4K SF ground-floor restaurant. The project will also include 34K SF of ground-floor retail and restaurant space, plus a rooftop bar and lounge.
Donohoe said it has already begun construction on the project and expects to deliver it in late 2024.
