Walker & Dunlop Secures $104.5M Loan for Ritz-Carlton Savannah

Walker & Dunlop secured a $104.5 million construction loan for TMGOC Ventures to develop a 168-room Ritz-Carlton in Savannah, Georgia. The LCP Group provided the capital for the 15-story historic redevelopment, which will transform two 1911 office buildings into a 190,000-square-foot luxury property slated to open in 2028. [2]

Who provided the capital for the development?

The LCP Group, L.P. supplied the $104.5 million construction loan to borrower TMGOC Ventures. Lodging Magazine reported that Walker & Dunlop arranged the financing for the transaction. [1] The capital stack will also incorporate federal and state historic rehabilitation tax credit programs, according to Hotels Magazine. [2] Furthermore, the developers will utilize local property tax abatement programs to support qualified expenditures for the historic structure. [2]

What are the physical dimensions of the planned property?

The Ritz-Carlton Savannah will span 190,000 square feet across 15 stories, offering 168 rooms. [2] The development requires the historic redevelopment of two existing office buildings that were originally constructed in 1911. [2] At the time of its construction, the property stood as downtown Savannah’s first skyscraper and remains its tallest building, holding a designation as a historic structure. [2] The hotel will feature multiple food and beverage outlets distributed across four distinct levels: the lower level, the ground floor, the second floor, and the rooftop. [2]

Why is new development restricted in this market?

The Savannah Historic District enforces restrictive zoning that limits high-density hotels and explicitly prohibits the demolition of historic structures. [2] Alison Tan, VP of investments at TMGOC, stated that the area is one of the most sought-after development markets in the Southeast specifically for hotel projects due to its limited sites and highly selective review process. [2] Ari Hirt, managing director of Capital Markets Institutional Advisory at Walker & Dunlop, noted that very few luxury hotels are currently operating in the market, creating a clear demand for high-end accommodations and amenities. [2]

Which demand drivers surround the site?

The property is situated near several established local attractions, including River Street, City Market, and Forsyth Park. [2] Hotels Magazine reported that additional demand drivers for the upcoming luxury hotel include the local convention center, the Plant Riverside District, and Broughton Street. [2] The Savannah College of Art & Design and the Port of Savannah also serve as primary traffic generators for the immediate area surrounding the hotel. [2]

Who advised the transaction?

Walker & Dunlop Capital Markets Institutional Advisory and Walker & Dunlop Hospitality Advisory partnered to arrange the transaction on behalf of TMGOC Ventures. [2] The advisory team responsible for arranging the capital included Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Dustin Stolly, Ari Hirt, Sean Reimer, and Jason Schwartzberg. [2] Throughout the process, Jay Morrow and Carter Gradwell from the hospitality team advised TMGOC Ventures. [2]