A developer is trying to raise $27 million to help fund construction of a 267-room hotel at Reston Town Center.
Annapolis-based Hogan Cos. is part of the team seeking the money for the project, where construction is scheduled to start this fall, The Washington Business Journal (WBJ) has reported.
Marketing materials indicate the proposed hotel will fly two Marriott International Inc. brands — an extended-stay Residence Inn and Northern Virginia’s first boutique AC Hotel,
The funds would be part of the overall requirements for the overall $101 million project to be constructed by Donohoe Cos. Inc., based in Bethesda.
A representative for Donohoe confirmed to the business publication that the developer hopes to lock in financing in time to start construction in the fall but declined to comment on the solicitation.
The overall Reston Town Center expansion will incude 4.4 million sq. ft. of office space, public spaces, retail and residential as well as the hotels.
Donohoe is developing the hotels under a ground lease with the site’s owner, Boston Properties, which has secured anchor tenants including Fannie Mae and Volkswagen Group of America Inc., WBJ reports.
Weinblatt’s solicitation went to a larger list of email recipients than is typical, including the Washington Business Journal, the publication reported.
“The solicitation says the project is slated to generate a development yield of 8.7% return, with a hold period of four years. The minimum commitment is $50,000 and would-be investors have until Aug. 19 to pony up the funds. Donohoe expects to close on its loan in time to start construction in October.”
