US$360 mn construction loan provided for Marriott Wardman redevelopment

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Carmel Partners has acquired a $360 million construction loan for their proposed redevelopment of the old Washington Marriott Wardman Park Hotel in Washington, D.C. Carmel Partners, located in San Francisco, intends to replace the 1,152-key hotel, closed since 2020, with two residential structures. The loan is provided by Wells Fargo. The lender did not respond to requests for comment right away.

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In 1913, the Wardman Hotel debuted at 2660 Woodley Road NW as the Wardman Hotel, subsequently becoming the Marriott. It closed permanently in the winter of 2020 after experiencing financial difficulties as a result of the pandemic.

History on the Washington Marriott Wardman Park Hotel Redevelopment

Because of the housing crisis caused by the expansion of Washington, D.C. during World War I, the hotel was a major success. The Wardman Park Hotel was renamed less than a year after it opened. It drew notable visitors and tenants, including foreign diplomats, members of Congress, and Vice President Marshall.

On January 11, 2021, the hotel’s owner, Pacific Life subsidiary Wardman Hotel Owner LLC, declared bankruptcy, announced the hotel’s permanent closure, and terminated its management contract with Marriott. Carmel Partners paid $152.2 million for the property in a 129-round bankruptcy auction in July 2022. The business revealed intentions to develop a 900-unit, two-tower multifamily building on the property at the time.  The Historic Preservation Review Board authorised the renovation plans in April 2022.

The development was originally considered to be less than 3 acres. Plans released with public document, however, revealed that it would be more than 5 acres. It was later authorised. According to D.C. papers filed with the Historic Preservation Review Board, Carmel Properties intends to destroy the hotel and replace it with two 90-foot multifamily structures built around a central courtyard and including 2 acres of green space.