Construction Loan Monitoring for the Renovation of Hotel Clermont
The Clermont Motor Hotel was built in 1924 and had become vacant in recent years. Over a two-year period, the Project consisted of selective demolition and renovation of the historic hotel, to be known as Hotel Clermont, and the surrounding site. The new design of the existing structure accommodated 94 hotel rooms, an upgraded lobby, a new restaurant, and a roof top terrace. In addition, the hotel included a new roof top deck with cocktail bar and a chef-driven restaurant within the structure. Parking was provided by hydraulic lifts. With more than a dozen trades on site each day, project management became an essential aspect to the construction progress.
As the primary lender on the construction loan for the hotel development, Fundrise relied heavily on the project’s scheduling commitments. Monthly disbursements of the construction loan necessitate detailed inspections confirming the completion of specific trades and project milestones.
AKT Peerless utilized our extensive background in construction and cumulative cost data to perform a preliminary review of the project prior to loan closing. The initial review helped pinpoint any major factors that could potentially impact the original proposed budget or schedule throughout the duration of the project.
AKT Peerless’ presence at monthly pay application review meetings provided regular insight into any design or scheduling changes to the project. The information at the meetings was regularly communicated to Fundrise so they could carefully manage any financial risks throughout the various stages of construction.
AKT Peerless’ comprehensive monitoring services provided Fundrise:
- Protection from liability exposure during the initial review of the construction documents.
- Recommendations for budgetary contingencies to account for unforeseen conditions.
- Recurring updates on any potential risks or modifications to the construction design throughout the construction.
- Assurance that the monthly disbursements of loan funds were not premature but were consistent with the appropriate project milestones.