27 Aug 2014
Pub chain secures funding for US$25.3m mixed use redevelopment featuring day spa
BY Helen Andrews
The family-owned pub chain McMenamins has secured financing for the redevelopment of a vacant 1930s art deco school building in Bothell, Washington, into a mixed-use leisure facility including a 73-bedroom hotel with restaurants, on-site brewery and a full-service day spa.
The Ankrom Moisan Architects-designed project plans to break ground in late September with the goal of opening in November 2015.
The six-massage-room spa has a salon with four pedicure stations and two manicure desks, plus an open air saltwater soaking pool. In the sale of the school to McMenamins, the city ensured the refashioned soaking pool and an additional community room will be open to the Bothell community members for 15 years.
Renowned for its redevelopment projects and breweries throughout northwest America, McMenamins told Spa Opportunities that the funding for the Anderson School project is coming from a variety of sources.
Originally meant to cost US$26m (€18.7m, £15.5m), the owners didn’t manage to secure the entire investment amount of US$8m (€6m, £4.8m) anticipated to supplement their sizeable bank loan. McMenamins attracted just US$6.3m (€4.7m, £3.8m) from 23 investors, almost entirely from the Northwest region. The average investment by each contributor was approximately US$274,000 (€208,000, £165,000).
The owners have therefore taken out an extra loan of US$1m (€0.7m, £0.6m) – making the total loan sum from HomeStreet bank US$18m (€13.6m, £11m). The remaining US$1m (€0.7m, £0.6m) is being provided in equity by McMenamins.
“That, combined with some budget tightening, brought the total project cost down to US$25.3m (€19m, £15m),” said a spokesperson for McMenamins.
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