Offering Update: Washington D.C. Hospitality Property

Abstract banner showing real estate in Washington D.C. meant to illustrate progress on hospitality property

Offering overview

Yieldstreet Commercial Real Estate provided a $4.2M mezzanine loan to a Washington, D.C. based real estate developer and manager. The Loan is secured by the pledge of the Borrower’s equity interest in its subsidiary, which owns the leasehold interest in a 99-unit limited service hotel in Downtown Washington, D.C. The Sponsor used the Loan proceeds, alongside an $18M senior bank loan, to acquire the Property and fund the renovation costs to convert the Property into 99 furnished short-term rental studio apartments.

  • The Sponsor has also executed a 15-year master lease with the Lessee for 100% of the Property’s units. The Lessee is a short-term rental operator managing a $4.1B portfolio of over 8,500 units. 
  • The Loan has an initial 36-month term with one 12-month extension option.

Offering update

Since the launch of the deal, the project has reached several milestones:

  • As of October 1, 2020, 75% of the general and low voltage demolition has been completed from the basement to the 10th floor, including the lobby demolition and eight floors of corridor and unit carpet removal, along with wire pulling and wire end crimping.
  • Mechanical, Engineering, and Plumbing (MEP) Demolition and Rough-Ins are 65% complete, with all plumbing fixtures having been removed. Electrical removal for floors two through five and piping removal on the second floor is ongoing.

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