Provident has partnered with Radford University to bring a brand new, state-of-the-art hotel and conference center to the area. Located directly across the street from the University's campus, the six-story, 124 room facility brings a much-needed amenity to the University and the surrounding community, while helping further Radford University's academic mission with the advent of its Hospitality Program.
In April 2021, acting as the Owner/Borrower on the Project, Provident reached financial close on a 124-key hotel project for the benefit of Radford University (“University”) and the Radford University Foundation (“RUF”). The Project consists of approximately 88,000 gross square feet, including roughly 4,000 square feet of conference space, located within the 600 block of Tyler Avenue in the City of Radford, Virginia (directly across from the Radford University campus and its largest outdoor function space, known as Moffett Lawn).
The Hotel is owned, operated and principally used by Provident Group – Radford Properties LLC (“Provident SPE”), a special purpose entity created solely for the Project, for the benefit of Radford University and the Foundation. The Hotel is a six-story structure and includes 124 guestrooms, including 4 suites. In addition to the conference and pre-function space, the lobby level includes a visitor center, a coffeeshop and a 500 square foot private dining room for up to 20 people. The rooftop level includes a 2,750 square foot indoor rooftop bar and restaurant, a 1,650 square foot rooftop terrace and a 1,450 square foot rooftop event terrace. In total, the Hotel includes 12,350 square feet of function space.
On Tuesday, April 13, 2021, $24.5 million of tax-exempt revenue bonds were sold through the Economic Development Authority of the City of Radford, Virginia. Loop Capital Markets served as Placement Agent for the Bonds. Bond proceeds were loaned by the Authority to Provident Group – Radford Properties LLC and were applied, together with other moneys, to (a) finance a portion of the costs of the acquisition, construction and equipping of the Hotel, (b) fund deposits to debt service reserve funds and operating reserve funds, (c) pay capitalized interest on the Series2021 Bonds and working capital, and (d) pay costs of issuance of the Series2021 Bonds. Additionally, the Bonds were issued as “Sustainability Bonds” based on use of proceeds. The purpose of identifying the Bonds as Sustainability Bonds was to allow investors to invest directly in obligations that finance socially beneficial and sustainable projects.
Preston Hollow Capital, based in Dallas, served as the sole purchaser of the bonds, ensuring a long-term partner incentivized and invested in the Project’s success. The Project was built by S.B. Ballard Construction Company based on architectural design provided by BLUR Workshop, and is managed by Aimbridge Hospitality, LLC.