News and notes from Reston (tm).

Tuesday, August 30, 2022

You Too Can Own a Piece of Reston Town Center: Investors Sought for Hotel

As construction continues near the future Reston Town Center Metro Station, developers are letting folks -- well, not just any folks -- get a piece of the action. 

For the low starting point of just $50,000, you too can own a tiny piece of a new "dual-branded hotel" near the 420' (heh) tower. Give us some good investment blockquote, BFFs at the Washington Business Journal:

A team including Annapolis-based Hogan Cos. is looking to raise $27 million to help fund the development of a dual-branded hotel at Reston Town Center, where construction is slated to kick off this fall.

Hogan is hoping to raise equity for the 267-room hotel, that will fly two Marriott International Inc. (NYSE: MAR) brands —  an extended-stay Residence Inn and Northern Virginia's first boutique AC Hotel, according to marketing materials. The funds raised would be part of the larger capital stack needed to develop the $101 million project, 

Weinblatt's solicitation went to a larger list of email recipients than is typical, including the Washington Business Journal. 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.

We've always dreamed of being part of a "capital stack," whatever that is, and an 8.7 percent return ain't bad, though we're still waiting for our far more lucrative investment in NFTs to pay off.  And after checking under the sofa cushions in Restonian World Headquarters' sunken living room, we're only $49,998.83 shy of the 50K minimum. Anyone want to go in on a trashcan on the 17th floor of the future Residence Inn?

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