Aparium Resort Group
The rocky restoration of a lodge in downtown Alexandria, Virginia is battling monetary headwinds within the type of a default on senior stage bond funds.
“For the primary time in 5 weeks, a municipal borrower has disclosed their first cost default on bondholders,” stated a
The bonds have been issued by the Alexandria Industrial Improvement Authority and the Tourism Improvement Financing Program to finance the renovation of the constructing that now features because the Heron Resort.
In line with the disclosure on the Municipal Securities Rulemaking Board’s Digital Municipal Market Entry web site, the default follows a sample of monetary troubles with the constructing.
“The Heron Resort was initially scheduled to open in November of 2023 however, resulting from building delays, the supply of the lodge was delayed 7 months,” per EMMA.
“Because of the building delays, receipt of challenge revenues and funds on the challenge’s bonds have additionally been delayed and unscheduled attracts on the bonds’ debt service reserve fund have been made to pay bonds.”
EMMA disclosures chart a collection of
Per the disclosures, “Present funds have been inadequate to pay principal and curiosity on the Sequence 2022B-2 bonds and there’s no Debt Service Reserve Fund for the Sequence 2022B-2 bonds. In consequence, not one of the September 1, 2025, debt service cost of $54,800.00 for the Sequence 2022B-2 bonds was made.”
MMA notes that the bonds are distinctive from each other as a result of the seniors are payable from a portion of the state and native gross sales taxes collected on the lodge, whereas subordinates are backed by a statutory entry charge collected by the developer.”
The lodge formally opened and began accepting company in June 2024 after an in depth renovation of what was the George Mason Resort which opened in 1926. Inside renovations started in 2019 however stalled in the course of the pandemic.
In line with the Alexandria Financial Improvement Partnership, the challenge is a partnership that features the Aparium Resort Group, Might Reigler Properties, and Potomac Funding Properties.
Hole financing to gas the renovation was achieved with assist from the state’s Tourism Improvement Financing Program which allowed the developer to boost $6 million.
In line with AEDP, “The bond debt is owned by the developer — not town or native property taxpayers — and it will likely be repaid by the developer and thru future gross sales tax income generated by those that keep, dine, and use the lodge.”
Representatives of the AIDA couldn’t be reached for remark.
