Mint House and developer Altus Realty have secured financing to help convert an office building in downtown Washington, D.C., into high-end, hotel-style apartments for executives.
The $30.25 million loan is meant to develop 85 units in the 11-story Denrike Building at 1010 Vermont Ave. NW, according to a statement from Hall Structured Finance, which originated the deal. The rooms are designed to range from studio to two-bedroom units and include a kitchen, workspace, and living and dining areas, with the option of nightly, short-term or long-term stays, according to Mint House.
“The location’s proximity to many popular attractions paired with the strong Mint House brand was very attractive,” Bryce Yamauchi, a loan officer at Dallas-based Hall, told CoStar News. “And with many traditional lenders pulling back on construction financing over the past year, the expected opening in 2025 is ideal timing as there will not be a lot of new product competition in the market.”
Altus Realty and McLean Partners acquired the historic building for just under $16 million in 2022.
Mint House, a technology-focused real estate operator with 23 properties in 16 cities across the United States, announced the D.C. project this past June. It’s the company’s first development in the nation’s capital.
At the time, executives touted the project as a “turnkey solution” for building owners looking for alternative revenue streams in residential hospitality.
“For building owners, increased overall demand for hospitality offers optimized returns due to Mint House's operational expertise and dynamic pricing,” the company said in the statement, citing a desire for premium short-term housing among tourists and business travelers.
Will Lucas founded Mint House in 2017 after looking for short-term rentals but with a more consistent experience, according to CoStar reporting.
"What has happened is there's been a massive explosion in demand for apartment-style or Airbnb-style accommodations that has taken place over the last 10 years, and that has created a glaring need for professionalized branded operators to deliver all the things that [hotel] brands do," Lucas told Hotel News Now in 2021.
Much of that consistency is delivered through the company’s technology, which offers guests digital check-in and concierge services, smart thermostats and TVs, and pin codes to unlock units.
During the pandemic, Mint House began offering in-room fitness options, including on-demand videos and online trainers, and worked with local restaurants and food delivery providers to mimic the room-service experience. Guests could also buy items found in their fully furnished units, including books, art, furniture and kitchen items.
The company previously told CoStar News it plans to expand to 50 cities within the next two years, more than doubling its footprint, with a focus on major markets popular with business travelers. Current operations include sites in New York, Dallas, Denver, Philadelphia and Nashville, Tennessee.
For the Record
Lindsay Stroud of Institutional Property Advisors arranged the financing.