The Loren at Lady Bird Lake will include a 108-room hotel and 26-unit condominium tower.
AUSTIN, TX—A new first lien construction loan totaling $80 million has been secured to finance the development of The Loren at Lady Bird Lake. The development, which will include a 108-room boutique hotel and adjacent 26-home luxury condominium tower, is slated to open in first quarter 2022.
"We're excited to continue the success of The Loren Hotel brand by bringing our next venture to Austin, one of America's most exciting and fastest growing cities, where we believe the luxury traveler is underserved. As in Bermuda, where we've attracted a discerning international travel market, we expect to deliver the same focus on elevated service, appreciation for quality design and art, and an impeccable location to appeal to international travelers and serve as a social hub for Austinites. Living, staying or dining here will be an unrivaled way to experience downtown Austin and the park," said Stephen King, founder, The Loren Hotel Group.
The project is being developed by C12 Capital Management LP/Sardis Developments. Dallas-based Hall Structured Finance provided the financing. Michael Landon with CBRE sourced the financing for the project.
"Austin is booming, both in terms of population growth and business and leisure travel, and this new development will be able to successfully serve both sectors with its combination of a boutique hotel and luxury residences," said Mike Jaynes, president of Hall Structured Finance. "We are looking forward to supporting the expansion of the prestigious Loren brand to open their first property in the US and believe it will be a great success."
The new hotel follows the successful launch of The Loren at Pink Beach in Bermuda in 2017.
"Austin has a strong high-rise residential market, and we really liked that component of the project because the site offers spectacular downtown views, plus great access to downtown amenities via the Pfluger Pedestrian Bridge," Matt Mitchell, senior vice president at Hall Structured Finance, tells GlobeSt.com. "The hotel will also benefit from the location and strength of the Austin market. We greatly admire what the developers achieved with their first Loren development in Bermuda, and believe they will match that with this project."
Hall likes the trajectory of the Austin market, which is fueling a demand increase for hotels, Mitchell says.
"In addition, travelers increasingly prefer bespoke accommodations, and we feel that The Loren at Lady Bird Lake will bring something truly unique and special to the Austin market," he tells GlobeSt.com. "The location is one-of-a-kind."
Hall Structured Finance was named the number one non-bank hotel construction lender in the nation in 2018. The direct lender has now closed $380 million in loans in 2019 and is on track to close in excess of $500 million by the end of the year.
CBRE Hotels research experts predict the Austin hotel market will remain healthy during the next two years with modest growth in occupancy, average daily room rates and an overall increase in RevPAR.
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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.
