VCC Helps Finance Akron Landmark’s Transformation into a Hotel

Development Fund of the Western Reserve (DFWR) announces first Community Loan Fund project financing – Financing will be used to support construction of the United Building into a boutique hotel

DFWR has announced the financing of the historic United Building Hotel renovation project.  DFWR, a private non-profit affiliated with the Development Financing Authority of Summit County, assisted in financing the project by providing a $1.280M loan.  Total project costs are approximately $10M.

The loan was made through the Akron Community Revitalization Fund (ACRF), a community endeavor which was capitalized by over thirty philanthropic foundations, individual and corporate grants, new markets tax credit equity and private loans and investments.  The ACRF was established to assist with financing important community and economic development projects within many of Akron’s most economically distressed neighborhoods providing more flexible rates and terms than is available through conventional financing.  Other financing was provided through historic tax credit equity, Cortland Bank, and Village Capital Corporation, (VCC) a Community Development Financing Institution (CDFI) based in Cleveland.  This project is the first loan VCC has made in Akron. VCC also assisted DFWR with underwriting the project.

The project is an adaptive re-use of the historic United Building into a 71-room boutique hotel in Akron’s Main/Market Streets Historic Arts district.  The hotel will be developed and managed by the Riley Hospitality group of Medina, which has hotel properties in several states. The project will create approximately 83 construction jobs and 20 permanent and 9 part-time jobs in Akron’s downtown. Pride One Construction of Medina is the General Contractor for this project.

Chris Burnham, DFWR Executive Director said, on behalf of the DFWR Board of Directors, “We express our gratitude to all the funders of the ACRF, and we acknowledge our partner-lenders VCC and Cortland Bank.  Most of all we thank the development team for having the vision and faith to bring this important investment into Akron’s downtown.”

Thanks to Crain’s and Jay Miller for their coverage of this great project VCC is proud to be involved in!  Crain’s Article