Yareton Investment can now advance the hotel component of its broader mixed-use project.
TACOMA, WA—A 22-story 304-room full-service Marriott hotel, now 30% complete, will feature 9,000 square feet of event space and a 10,000-square-foot ballroom. Furthermore, it will benefit from being directly connected to the Greater Tacoma Convention Center, one of the largest meeting locations in the Pacific Northwest.
The hotel is located in Tacoma's tourism corridor surrounded by museums, dining, shopping, day spas, art, golf and other attractions which helped drive record-setting visitation to Tacoma in 2017. Moreover, Tacoma is home to a range of large corporations including Boeing, MultiCare Health System and TrueBlue.
3650 REIT recently facilitated a $78 million construction loan to Yareton Investment LLC to complete the development of the hotel. With this loan, Yareton Investment is able to advance the development of the hotel component of its broader mixed-use project that includes a residential tower to accommodate the needs of local residents and University of Washington Tacoma students.
“This deal presented a unique opportunity to partner with a high-quality sponsor who is pursuing the development of a transformational project that will advance the revitalization of downtown Tacoma,” said Jonathan Roth, co-founder and managing partner at 3650 REIT. “With its premium amenities, proximity to the light rail service and direct connection to the convention center, the hotel should experience consistently high levels of demand.”
This is the only hotel that is immediately adjacent and directly connected to the convention center. As a result, the hotel is well positioned to benefit from strong demand drivers for business, leisure and group travel, which will have a direct impact on business travel traffic and other visitor revenue, GlobeSt.com learns.
“The presence of a convention center hotel attached to the convention center is expected to significantly increase convention center traffic, as the convention center did not previously have a dedicated convention center hotel and the city of Tacoma had a limited supply of hotel rooms to support larger events,” Roth tells GlobeSt.com.
Matt Fisher at Pacific Northwest mortgage banker, JS Coats Capital LLC, was responsible for arranging the financing. 3650 REIT is a relationship lender providing fixed-rate bridge and long-term financing solutions to commercial real estate investors.
“The experienced team at 3650 REIT is familiar with the Tacoma market, recognizes the potential of our project and worked diligently to structure a financing solution that will enable the completion of what will be the area's premier full-service hotel,” says Fei Xie, Yareton Investment general manager.
Join the 17th Annual GlobeSt Net Lease Conference (formerly a RealShare event) on April 3 and 4 in New York City alongside the industry's most influential and knowledgeable real estate executives from the net lease sector. Click here to register and view the agenda.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
