Dealmaker: Walker & Dunlop Arranges $105M for Ritz-Carlton Savannah

(Photos Courtesy of TMGOC Ventures)

Walker & Dunlop, Bethesda, Md, arranged $104.5 million in construction financing for the Ritz-Carlton Savannah, a 15-story luxury hotel in Savannah’s Historic District.

Walker & Dunlop Capital Markets Institutional Advisory and Walker & Dunlop Hospitality Advisory partnered to arrange the transaction for TMGOC Ventures, Boca Raton, Fla.

Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Dustin Stolly, Ari Hirt, Sean Reimer and Jason Schwartzberg of the W&D Advisory team arranged the $104.5 million of capital provided by The LCP Group, L.P. Jay Morrow and Carter Gradwell of the W&D Hospitality team assisted and advised TMGOC Ventures throughout the process.

TMGOC will also utilize federal and state historic rehabilitation tax credit programs, allowing for tax credits for qualified expenditures and local property tax abatement programs.

Upon completion, the hotel will comprise the historic redevelopment of the two existing office buildings into a 168-key Ritz-Carlton hotel. Dating to 1911, the property is downtown Savannah’s first skyscraper, its tallest building and a designated historic structure.

The property is situated in Savannah’s Historic District, one of the Southeast’s most constrained markets for new development. Recent zoning limits high-density hotels and prohibits demolition of historic structures, creating a rare redevelopment opportunity. Nearby economic and demand drivers include the Plant Riverside District, Broughton Street, the Savannah College of Art & Design and the Port of Savannah.

“The Savannah Historic District is one of the most sought-after development markets in the Southeast, particularly for hotel projects, given its limited sites, restrictive zoning, and highly selective review process,” said Alison Tan, VP of Investments at TMGOC.