HOUSTON—The 1950's era Southwestern Bell Telephone Company office building in downtown is finding new life as a 150-key all-suite select service Hyatt Place Hotel. Dallas-based HALL Structured Finance closed a new first lien construction loan totaling $22.8 million to finance the adaptive reuse of the hotel project.

“The Houston commercial real estate market has softened over the last couple years, but what attracted us to this opportunity was the highly experienced local development team and the great long-term prospects for the Houston market overall,” Matt Mitchell, senior vice president of HALL Structured Finance, tells GlobeSt.com. “In addition, downtown Houston is an increasingly attractive urban environment and we expect that trend to continue.”

The new Hyatt Place Hotel will feature a ground level dining area, a rooftop cocktail bar, indoor pool, fitness center, complimentary Wi-Fi and approximately 800 square feet of meeting space. The 150 guestrooms will be located on the third through 16th floors of the building, and the hotel will feature an all-suite format with rooms averaging more than 400 square feet in size.

The project is located within walking distance of various local attractions and businesses, including the George R. Brown Convention Center, Minute Maid Park, the Toyota Center and the headquarters of Shell Oil Company and Waste Management.

The project development team includes Anthony and Nick Patel, co-owners of Pride Management, which will manage the property upon completion.

“We are extremely excited to be part of the continued revitalization of downtown Houston and to have the opportunity to bring a vacant historic building back to life,” said Nick Patel. “HALL Structured Finance did an excellent job of understanding the potential of our project, and worked with us and other stakeholders to find a customized solution to meet our financing needs.”

HALL Structured Finance has exceeded $250 million in construction loans in 2017, and is on track to finish the year at more than $300 million. During the company's history, it has financed several developments in Houston, including the Hotel Indigo at the Galleria and the Marriott TownePlace Suites Houston in Westchase.

“This project presented us with a great opportunity to work with an experienced development team and trusted hotel brand in a growing market, making it an ideal investment for us,” said Mike Jaynes, president of HALL Structured Finance. “We have financed several projects in Houston in the past, and are very optimistic about what we can continue to do there in the future.”